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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

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:

Years Cash Flow
0 -270
1-10 +65

On the basis of the behavior of the firms stock, you believe that the beta of the firm is 1.4. Assuming that the rate of return available on risk-free investments is 7% and that the expected rate of return on the market portfolio is 15%, what is the net present value of the project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) NPV=$ b. Should the project be accepted? Yes or No

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