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Please find Part B fou are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions
Please find Part B
fou are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions follars) The project's beta is 1.9. Assuming rf=4x and E(rM)=14x Required: a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Step by Step Solution
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