CAPM and valuation you are a consultant to a firm evaluating an expansion of its current business. The cash-flows forecasts (in millions of dollars) for the project are as follows Years 0,1-10 Cash Flow -100, +15. on the basis of the behavior of the firms stock, you believe that the beta of the firm is 1.4. Assuming that the rate of return available on risk-free investments is 4 percent and that the expected rate of return on the market portfolio is 12 percent, what is the net present value of the project