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A project has a forecasted cash flow of $117 in year 1 and $128 in year 2. The interest rate is 8%, the estimated tisk

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A project has a forecasted cash flow of $117 in year 1 and $128 in year 2. The interest rate is 8%, the estimated tisk premium on the market is 11.75%, and the project has a beta of 0.57. If you use a constant risk-adjusted discount rate, answer the following: a. What is the PV of the project? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the certainty equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations, Round your answers to 2 decimal places.) Certainty Equivalent Cash Flow Year 1 Year 2 c. What is the ratio of the certainty equivalent cash flows to the expected cash flows in years 1 and 2? (Do not round Intermediate calculations. Round your answers to 2 decimal places) Ratio Yeart Year 2

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