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Nueva pestana Test F Problem 7-11 You are a consultant to a large manufacturing corporation considering a project with the following net after- tax cash
Nueva pestana Test F Problem 7-11 You are a consultant to a large manufacturing corporation considering a project with the following net after- tax cash flows (in millions of dollars): Years from Now 0 1-9 10 After-Tax CF -20 10 20 The project's beta is 1.7. Assuming p= 9% and Ern) = 19%. a. What is the net present value of the project? (Enter your answer in millions rounded to 2 decimal places.) Net present value million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Round your answer to 3 decimal places.) Highest possible beta value
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