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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 ?120
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: |
Years | Cash Flow ($ millions) |
0 | ?120 |
1-10 | +17 |
The firm's existing assets have a beta of 1.6. The risk-free interest rate is 6% and the expected return on the market portfolio is 14%. What is the project's NPV? (Enter your answer in millions. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) |
NPV | $ |
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