Question: Return to question Problem 7-11 (Algo) You are a consultant to a large manufacturing corporation considering a project with the following net after- tax cash
Return to question Problem 7-11 (Algo) You are a consultant to a large manufacturing corporation considering a project with the following net after- tax cash flows (in millions of dollars): Years from Now 0 1 to 10 After-Tax CE -$ 25 $ 10 The project's beta is 1.9. Assuming re = 58 and (rm) - 158 Required: a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Net present value $ 12.98 % million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct. Highest possible beta value 3.410
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