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answer please You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the

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You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: On the basis of the behavior of the firm's stock; you believe that the beta of the firm is 1.4. Assume that the rate of return avallable on risk-free investments is 4% and that the expected rate of return on the market portfolio is 12%. a. What is the project IRR? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What is the cost of capital for the project? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. Does the accept-reject decision using IRR agree with thye decision using NPV? Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A, and a defensive stock D. Required: a. Find the beta of each stock. b. If each scenario is equally likely, find the expected rate of return on the market portfollo and on each stock. c. If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks? d. Which stock seems to be a better buy on the basis of your answers to (a) through (c)? Complete this question by entering your answers in the tabs below. If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places

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