You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax CF 0 1 to 10 -$ 34 $14 The project's beta is 1.8. Assuming rf = 5% and E(rm) = 15% Required: What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. $ 17.55 x million Net present value

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
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Problem 7-11 (Algo)
You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions
of dollars):
Years from Now After-Tax CF
0
-$ 34
1 to 10
$ 14
The project's beta is 1.8. Assuming rf
=
5% and E(™M) = 15%
Required:
What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2
decimal places.)
Net present value
Answer is complete but not entirely correct.
$ 17.55 x million
Transcribed Image Text:Problem 7-11 (Algo) You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax CF 0 -$ 34 1 to 10 $ 14 The project's beta is 1.8. Assuming rf = 5% and E(™M) = 15% Required: What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value Answer is complete but not entirely correct. $ 17.55 x million
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