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	-26
1-9	24
10	15

The project beta is 1.65. Assuming Rf = 4%, and E(Rm) = 14%, what are the discount rate and the NPV of the project?.

Options:

	Discount Rate = 18.5%, NPV = $85.25
	Discount Rate = 20.5%, NPV = $71.54
	Discount Rate = 12.4%, NPV = $76.95
	Discount Rate = 20.8%, NPV = $85.95