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

Years from NowAfter-Tax Cash Flow0-1001-1018

The project's beta is 1.1.

a.Assuming thatr_f= 5% andE(r_M) = 10%, what is the net present value of the project?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b.What is the highest possible beta estimate for the project before its NPV becomes negative?(Round your answer to 2 decimal places.)