Question
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Years Cash Flow ($ millions) 0 240
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows:
| Years | Cash Flow ($ millions) |
| 0 | 240 |
| 1-9 | 52 |
The firm's existing assets have a beta of 1.3. The risk-free interest rate is 6% and the expected return on the market portfolio is 11%. What is the project's NPV
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
