Question $25$

Wilderness Adventures specializes in back$-$country tours and resort management. Travel Excitement specializes in marketing vacation ${?}^{\text{I}}$ package.

The beta of Wilderness Adventure's business is $2\mathrm{.}0,$ and that of Travel Excitement is $1\mathrm{.}2.$

The risk$-$free rate is $2\%$ and the expected return of the market portfolio is $10\%.$

Travel Excitement is considering a new project about building wilderness campgrounds with man$-$made lakes and hiking trails.

The project lasts for four years, and the cash flows of the project are presented in the following table.

$\backslash$table$[[$Year $0,$Year $1,$Year $2,$Year $3,$Year $4],[-$$$1,000,000,$$$400,000,$$$500,000,$$$200,000,$$$250,000$