You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars). After-Tax Year from Now CF 0 1-9 year 10 The project's beta is 1.7. Assuming that the risk-free rate is 9% and the expected rate of return on the market portfolio is 19%. What is the net present value of the project? Your answer should be in millions of dollars and accurate to the hundredth. For example, if your answer is 3.478 million dollars, then type in 3.48. -20 10 per 20

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 21P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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You are a consultant to a large
manufacturing corporation
considering a project with the
following net after-tax cash
flows (in millions of dollars).
After-Tax
Year from Now
CF
O
1-9
year
10
-20
10 per
20
The project's beta is 1.7.
Assuming that the risk-free rate
is 9% and the expected rate of
return on the market portfolio is
19%. What is the net present
value of the project? Your
answer should be in millions of
dollars and accurate to the
hundredth. For example, if your
answer is 3.478 million dollars,
then type in 3.48.
Transcribed Image Text:You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars). After-Tax Year from Now CF O 1-9 year 10 -20 10 per 20 The project's beta is 1.7. Assuming that the risk-free rate is 9% and the expected rate of return on the market portfolio is 19%. What is the net present value of the project? Your answer should be in millions of dollars and accurate to the hundredth. For example, if your answer is 3.478 million dollars, then type in 3.48.
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