A project has the following forecasted cash flows: Cash flow: The estimated beta is 1.5 . The market return is 16% and the risk-free rate is 7% a) Estimate the cost of capital for the project? b) What is the project's present value? c) What are the certainty-equivalent cash flows in each year? d) What is the ratio of the certainty-equivalent cash flows to the expected cash flow in each year? e) Explain why this ratio declines