You are a consultant to a firm evaluating an expansion of its current business. The...
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Finance
You are a consultant to a firm evaluating an expansion of its current business. The annual cash flow forecasts (in millions of dollars) for the project are:
| Years | Annual Cash Flow |
| 0 | -109 |
| 1 - 10 | 15 |
Based on the behaviour of the firm's stock, you believe that the beta of the firm is 1.1. Assuming that the rate of return available on risk-free investments is 6% and that the expected rate of return on the market portfolio is 11%, what is the net present value of the project?
NPV $ million
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