Question: Problem 1 2 - 3 1 CAPM and Valuation ( LO 3 ) You are a consultant to a firm evaluating an expansion of its
Problem CAPM and Valuation LO
You are a consultant to a firm evaluating an expansion of its current business. The cashflow forecasts In millions of dollars for the project are as follows:
tableYearsCash Flow
On the basis of the behavior of the firm's stock, you belleve that the beta of the firm Is Assuming that the rate of return avallable on riskfree investments is and that the expected rate of return on the market portfollo is what is the net present value of the project?
Note: Negatlve amount should be Indlcated by a minus sign. Do not round Intermedlate calculations. Enter your answer In millilons of dollars rounded to decimal places.
tableNet present value,million
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