Epsilon Corp. Is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Cash Flow Years ($ millions) -190 47 1-10 The firm's existing assets have a beta of 23. The risk-free interest rate is 5% and the expected return on the market portfolio is 11%6. What is the project's NPV? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV million

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Epsilon Corp. Is evaluating an expanslon of its buslness. The cash-flow forecasts for the project are as follows:
Cash Flow
($ millions)
-198
Years
1-10
47
The firm's existing assets have a beta of 23. The risk-free interest rate is 5% and the expected return on the market portfolio is 11%.
What is the project's NPV? (Enter your answer In millions. A negative answer should be indicated by a minus sign. Do not round
Intermediate calculations. Round your answer to 2 decimal places.)
NPV
million
Transcribed Image Text:Epsilon Corp. Is evaluating an expanslon of its buslness. The cash-flow forecasts for the project are as follows: Cash Flow ($ millions) -198 Years 1-10 47 The firm's existing assets have a beta of 23. The risk-free interest rate is 5% and the expected return on the market portfolio is 11%. What is the project's NPV? (Enter your answer In millions. A negative answer should be indicated by a minus sign. Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV million
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