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please and thank you!!! Problem 12-31 CAPM and Valuation (LO3) You are a consultant to a firm evaluating an expansion of its current business. The
please and thank you!!!
Problem 12-31 CAPM and Valuation (LO3) You are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts on milions of dollars for the project are as follows: a 1-10 Cath Fine TOD 14 On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 135. Assuming that the rate of return available on risk-free investments is 4% and that the expected rate of return on the market portfolio is 13% what is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round Intermediate calculations. Enter your answer in miilions of dollars rounded to 2 decimal places.) Net present value milion Step by Step Solution
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