QUESTION 49 For the next 2 questions suppose the following holds: You are evaluating a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax Cash Flow 0 -65 1-3 30 4 40 The project's beta is 1.5. Assuming that RF = 8% and E(RM) = 15%. What is th et present ue of the project? sume the firm not use debt $15.34 mil uses CAPM to calculate the cost of equity. $19.99 mil $22.61 mil $25.23 mil 26.97 mil QUESTION 50 Continuation of the previous problem: You are evaluating a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax Cash Flow 0 -65 1-3 30 4 40 The project's beta is 1.5. Assuming that RF = 8% and E(RM) = 15%. What is the highest possible beta estimate for the project before its NPV becomes negative? 2.75 3.13 3.36 3.58 4.33