Chapter 9-Problems i Saved Help Save & Exit Submit Check my work 7 A project has a forecasted cash flow of $123 in year 1 and $134 in year 2. The interest rate is 6%, the estimated risk premium on the market is 10.75%, and the project has a beta of 0.63. 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.) 10 points Present value eBook Print References 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 Year 1 Year 2