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?
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Personal Financial Planning
Authors: Lewis J. Altfest
2nd edition
1259277186, 978-1259277184
