You are a consultant to a firm evaluating an expansion of its current business.The cash-flow forecasts (in millions of dollars) for the project are as follows. Year 0: initial outlay of 100, Years 1 to 8:18 each year.

On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.2.Assuming that the rate of return available on risk-free investment is 2% and that the expected rate of return on the market portfolio is 12%, what is the (risk-adjusted) net present value of the project?

Please don't show your work in Excel because I want to learn step by step. Thank you.