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(Solved): You are a consultant to a large manufacturing corporation that is considering a project with the fol ...



You are a consultant to a large manufacturing corporation that is considering a project with the following net after-tax cash flows (in millions of dollars): Years from NowAfter-Tax Cash Flow 0 −45 1–10. 12 The project's beta is 1.4. Required: Assuming that rf = 6% and E(rM) = 14%, what is the net present value of the project? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. What is the highest possible beta estimate for the project before its NPV becomes negative? Note: Round your answer to 2 decimal places.



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