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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 (in millions

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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 (in millions of dollars) for the project are as follows: Years Cash Flow 0 100 + 19 1-10 On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.37. 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 16%, 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 millions of dollars rounded to 2 decimal places.) Net present value million

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