4. A project has the following forecasted cash flows:

| Cash Flows,$ Thousands | | | |
| --- | --- | --- | --- |
| C₀ | C₁ | C₂ | C₃ |
| -100 | +40 | +60 | +50 |

The estimated project beta is 1.5. The market return rₘ is 16%, and the risk-free rate rᵣ is 7%.(本題共 15 分)

(1) Estimated the opportunity cost of capital and the project's PV (using the same rate to discount each cash flow).