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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
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 3.5. Assume rf=13% and E(rM)=20%. Required: (a)What is the net present value of the project? (Enter your answer in millions. Round your answer to 2 decimal places.) (b)What is the highest possible beta estimate for the project before its NPV becomes negative? (Round your answer to 3 decimal places.)
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