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You have been hired by OF Corporation as a capital budgeting advisor. As a part of your job, you have identified the project with the

You have been hired by OF Corporation as a capital budgeting advisor. As a part of your job, you have identified the project with the following after-tax cash flows and the beta of 1.4. Years After-tax Cash Flows 0 -$50 1 $20 2 to 10 $21 per year Assuming that risk-free rate is equal to 9% and market risk premium is 15%, what is the net present value of the project? What is the highest possible beta estimate for the project before its NPV becomes negative?

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