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A project has the following forecasted cash flows: Cash Flows is thousands) G] C2 C3 -185 +122 +145 +135 The estimated project beta is 1.57.

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A project has the following forecasted cash flows: Cash Flows is thousands) G] C2 C3 -185 +122 +145 +135 The estimated project beta is 1.57. The market return rm is 17%, and the risk-free rate rf is 6% a. Estimate the opportunity cost of capital and the project's PV (using the same rate to discount each cash flow). (Do not round intermediate calculations. Enter your cost of capital answer as a percent and enter your PV answer in thousands. Round your answers to 2 decimal places.) % Cost of capital PV b. What are the certainty-equivalent cash flows in each year? (Do not round intermediate calculations. Enter your answers in thousands rounded to 2 decimal places.) Year Certainty-Equivalent Cash Flow 1 2 3 c. What is the ratio of the certainty-equivalent cash flow to the expected cash flow in each year? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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