What is the net present value of the project

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Looking at a 6-year project that will cost the company $30,000, you estimate the annual cash flows for the project to be $5,000, $7,000, $9,000, $11,000, $13,000 and $15,000. You also estimate the project's beta is 1.25. The current risk-free rate is 5% and the market return is 16%.

A. What is the net present value of the project?

B. What is the highest possible beta estimate for the project before its NPV becomes negative?

Reference no: EM131064261

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