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You are a consultant for a large manufacturing corporation that is considering a project with the following cash flows (in millions of dollars) Years from
You are a consultant for a large manufacturing corporation that is considering a project with the following cash flows (in millions of dollars) Years from now Cash flows 0 -23 32 1 5 2 5 3 5 4 7 5 10 6 10 You have just estimated that the project's beta is 1.4. The risk-free rate is 7% and the expected return of the market is 12%. (6 points) (a) What is the discount rate for this project? (b) What is the NPV of the project
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