. Consider a project with free cash flows in one year of $90,000 in a weak economy or

$117,000 in a strong economy, with each outcome being equally likely. The initial investment

required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest

rate is 5%.

Sisyphean Bolder Movers Incorporated has no debt, a total equity capitalization of $50 billion,

and a beta of 2.0. Included in Sisyphean's assets are $12 billion in cash and risk-free securities.

Required: Calculate Sisyphean's enterprise value and unlevered beta considering the fact that

Sisyphean's cash is risk-free.