Question
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Years Cash Flow ($ millions) 0 160
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows:
| Years | Cash Flow ($ millions) |
| 0 | 160 |
| 1-10 | 40 |
The firm's existing assets have a beta of 2.0. The risk-free interest rate is 6% and the expected return on the market portfolio is 13%. What is the project's NPV? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
