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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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