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You are a consultant to a firm evaluating an expansion of its current business. The annual cash flow forecasts (in millions of dollars) for the

You are a consultant to a firm evaluating an expansion of its current business. The annual cash flow forecasts (in millions of dollars) for the project are:

Years Annual Cash Flow
0 -100
1 - 10 19

Based on the behaviour of the firm's stock, you believe that the beta of the firm is 1.5. Assuming that the rate of return available on risk-free investments is 3% and that the expected rate of return on the market portfolio is 12%, what is the net present value of the project? (Enter your answers in millions. Round your answer to 2 decimal places. Use minus sign to enter negative answers, if any.)

NPV $ million

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