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

Years from Now After-Tax CF

0 -40

1-9 15

10 30

The project's beta is 1.9. Assumingr_f= 5%andE(r_M) = 15%

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.)

Net Present Value: __________

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 2 decimal places.)

Highest Possible beta Value: ____________