Question 3 (5 Points): A diversified listed company XYZ with activities in oil exploration, shipping, oil trading, copper mining and real estate plans a new real estate development in Hong Kong with an initial investment amount of $100m. The company projects a cash flow of $25 million per year over the next 10 years. The beta of XYZ company calculated from its stock price is 1.2. The average beta of real estate companies in Hong Kong is 2.3. The average beta of companies with a similar business profile in oil exploration, oil trading and mining is 1.5 . Calculate the NPV of the project with of XYZ with rf=4% and E[rM]=8%. Which beta is most appropriate to use? Explain your choice