You are a consultant to a large manufacturing corporation considering a project with the following net after$-$tax cash flows $($in millions

of dollars$)$:

The project's beta is $1\mathrm{.}9.$ Assuming $r_f=4\%$ and $E(r_M)=14\%$

Required:

a$.$ What is the net present value of the project? $($Do not round intermediate calculations. Enter your answer in millions rounded to $2$

decimal places.$)$

Answer is complete but not entirely correct.

b$.$ What is the highest possible beta estimate for the project before its NPV becomes negative? $($Do not round intermediate

calculations. Round your answer to $3$ decimal places.$)$

Answer is complete but not entirely correct.