Stock Sand Stock W lie on the security market line (see Table 1). Table 1 Stock x Stock z Expected Return 11% 15% Beta 1 1.8 (a) Treat Food Corp. is considering whether to invest in a new food manufacturing process that minimize carbon emission. The project will require an initial investment of 10 million. Suppose this project will produce the following free cash flows: 2m in year 1; 4m in year 2; 3m in year 3; and 4m in year 4. In year 4 you expect the growth rate of the free cash flow is 2% for the foreseeable future. The required rate of return on this project is 14% return for the first three years, and a 10% return thereafter. What is the NPV of this project