Problem $12-31$ CAPM and Valuation $($LO$3)$

You are a consultant to a firm evaluating an expansion of its current business. The cash$-$flow forecasts $($in millions of dollars$)$ for the

project are as follows:

On the basis of the behavior of the firm's stock, you believe that the beta of the firm is $1\mathrm{.}32.$ Assuming that the rate of return available

on risk$-$free investments is $3\%$ and that the expected rate of return on the market portfolio is $16\%,$ what is the net present value of the

project?

Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions

of dollars rounded to $2$ decimal places.

Net present value

million