Question
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Years Cash Flow ($ millions) 0 210
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows:
Years Cash Flow ($ millions)
0 210
1 60
2-8 49
The firm's existing assets have a beta of 2. The risk-free interest rate is 2% and the expected return on the market portfolio is 13%. What is the project's NPV?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
