Overview of cash flows for 3 different projects:

Values are in million US$.

Annual risk-free rate = 1.5%.

Market risk premium = 4.5%. What are the missing values: A, B, C, D, E & F?

Project Project 1 Project 2 Project 3 0 1 -100 10 -100 80 -100 30 Cash flows 2 3 4 10 10 10 40 C 0 30 30 30 5 100 0 0 (beta) A 0.7 0.5 r (cost of capital) 6 D E NPV B 4 F