Problem:
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: For 0 years -120 millions, for 1-10 years +17 Cash flow The firm's existing assets have a beta of 1.6. The risk-free interest rate is 6% and the expected return on the market portfolio is 14%.
Required:
Question: What is the project's NPV?
Note: Show all workings.