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A project has a forecasted cash flow of $128 in year 1 and $139 in year...

A project has a forecasted cash flow of $128 in year 1 and $139 in year 2. The interest rate is 7%, the estimated risk premium on the market is 12%, and the project has a beta of .68. If you use a constant risk-adjusted discount rate, what is:

a. The PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value            $

b. The certainty-equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Cash Flow
Year 1 $
Year 2 $

c. The ratio of the certainty-equivalent cash flows to the expected cash flows in years 1 and 2? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Ratio
Year 1
Year 2
Math   Advanced-Math   
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