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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) 0 150
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows:
Years | Cash Flow ($ millions) |
0 | 150 |
1-9 | 25 |
The firm's existing assets have a beta of 1. The risk-free interest rate is 3% and the expected return on the market portfolio is 10%. What is the project's NPV?
Group of answer choices
-11.04
12.38
-6.02
52.59
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