Messrs. Heba Corp. is bidding on a high-end luxurious villas construction project. She has prepared a valuation table and estimated that the project will produce a cashflow of AED 100M for each of three years. Given a risk-free rate of 4%, a market premium of 10%, and beta of 0.90,

a) (4 Points) What is the PV of the project?

b) (2 Points) Now assume that the cash flows change, but are risk free. What is the new PV?