Problem $9-22$ Certainty equivalents

$33\mathrm{.}36$ points

A project has the following forecasted cash flows:

The estimated beta is $1\mathrm{.}58.$ The market return is $18\%,$ and the risk$-$free rate is $5\%.$

a$.$ Estimate the cost of capital for the project and the project's PV$.$

b$.$ What are the certainty equivalent cash flows in each year?

c$.$ What is the ratio of the certainty$-$equivalent cash flow to the expected cash flow in each year?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

What are the certainty equivalent cash flows in each year?

Note: Do not round intermediate calculations. Enter your answers in thousands rounded to $2$ decimal places.

$\backslash$table$[[$Year$,\backslash$table$[[$Certainty$-$Equivalent$],[$Cash Flow$]]],[1,],[2,],[3,]]$