Required:

Assuming that rf $=7\%$ and E$($rM$)=15\%,$ what is the net present value of the project?

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

What is the highest possible beta estimate for the project before its NPV becomes negative?

Note: Round your answer to $2$ decimal places.You are a consultant to a large manufacturing corporation that is considering a project with the following net after$-$tax cash flows $($in

millions of dollars$)$:

The project's beta is $1\mathrm{.}1.$

Required:

a$.$ Assuming that $r_f=7\%$ and $E(r_M)=15\%,$ what is the net present value of the project?

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

b$.$ What is the highest possible beta estimate for the project before its NPV becomes negative?

Note: Round your answer to $2$ decimal places.