$1.$ You are evaluating a new project that costs $$24\mathrm{.}6$ million over its $12-$year life. Depreciation is straight$-$line to zero over the life of the project and the salvage value is zero. The project is expected to have the following base$-$case estimates:

Unit sales$/$year: $100,000$

Price$/$unit: $$120$

VC$/$unit: $$80$

FC$/$year: $$1,375,000$

Your firm has no debt and the firm$$s WACC is $13\mathrm{.}5\%$ and the corporate tax rate is $30\%.$ If the project$$s estimates are only accurate to within $+/-15\%,$ what is the NPV for the project under the best$-$case scenario? $2.$ Your firm is considering taking on a project that will result in OCFs of $$150,000$ per year, forever. Your firm has a $0\mathrm{.}85$ debt$-$to$-$equity ratio. The yield to maturity on bonds is $5\%.$ Corporate tax rate is $30\%.$ The current stock price is $$87.$ The firm has paid dividends of $$2\mathrm{.}25,$ $$2\mathrm{.}50,$ and $$3\mathrm{.}55$ over the last $3$ years and the most recent dividend payment is $$3\mathrm{.}75.$ Use the geometric average growth rate to estimate the cost of equity. Since this project is riskier than usual, management will apply an adjustment factor of $+2\%$ to the cost of capital for this project. What is the maximum cost of the project for us to accept?