You are a consultant to a large manufacturing corporation considering a project with the following net after-tax

Question:

You are a consultant to a large manufacturing considering a project with the following net after-tax cash flows (in millions of dollars):
Years from Now ____________ After-Tax CF
0 .............................................. -20
1-9 ............................................ 10
10 .............................................. 20
The project's beta is 1.7. Assuming rf = 9% and E(rM) = 19%, what is the of the project? What is the highest possible beta estimate for the project before its NPV becomes negative?
Net Present Value
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