please naswer fast correctly You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millionsof dollars):Years from Now01 to 10After-Tax CF-$ 40$ 15The project's beta is 1.9. Assuming rf = 5% and E(rm) = 15%Required:a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2decimal places.)Net present valuemillionb. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediatecalculations. Round your answer to 3 decimal places.)Highest possible beta value

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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