Beta and NPV Analysis. A project has the following forecasted cash flows (in thousands of dollars): Year 0    Year 1    Year 2   Year 3 ($100)   $30         $50         $90 The estimated project beta...

Beta and NPV Analysis. A project has the following forecasted cash flows (in thousands of dollars):

Year 0    Year 1    Year 2   Year 3

($100)   $30         $50         $90

The estimated project beta is 2.0. The market return is 13 percent, and the Treasury bill yield is 6 percent. Compute (a) the Project’s cost of capital and (b) the project’s NPV.