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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars):

The project’s beta is 1.7. Assuming r f 5 9% and E ( r M ) 5 19%, what is the net present value of the project? What is the highest possible beta estimate for the project before its NPV becomes negative? (LO 7-2)
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