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Problem 8-16 Cost of capital Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Years 0

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Problem 8-16 Cost of capital Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Years 0 Cash Flow ($ millions) -230 51 1-8 The firm's existing assets have a beta of 1.4. The risk-free interest rate is 5% and the expected return on the market portfolio is 10%. What is the project's NPV? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV million Risk/Return and CAPM (Ch.8)

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