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A project has the following forecasted cash flows:Cash Flows ($ thousands)C0C1C2C3?125+67+85+75The estimated project beta is 1.55. The market returnrm is 17%, and the risk-free raterf is 7%.a. Estimate the opportunity cost of capital andthe project’s PV (using the same rate to discount each cash flow).(Do not round intermediate calculations. Enter your cost ofcapital answer as a percent and enter your PV answer in thousands.Round your answers to 2 decimal places.)Cost of capital%PV$b. What are the certainty-equivalent cash flowsin each year? (Do not round intermediate calculations.Enter your answers in thousands rounded to 2 decimalplaces.)YearCertainty-EquivalentCash Flow1$2$3$c. What is the ratio of thecertainty-equivalent cash flow to the expected cash flow in eachyear? (Do not round intermediate calculations. Round youranswers to 4 decimal places.)YearRatio123