Question: 3} You are considering undertaking a project where a 512 million investment would generate after tax cash flows of $3.5 million per year for 5

3} You are considering undertaking a project where a 512 million investment would generate after tax cash flows of $3.5 million per year for 5 years. Assume the allequity financing rate for this project is 10%, and that you face a 21% marginal tax rate. a. What is the NPV and is this a good project? b. Now assume that you will finance the project by borrowing $10 million at a 7% rate, and that the note is repaid at $2 million per year [plus interest on the outstanding principal] for the five year project life. What is the APV? c. Now assume that you are considering borrowing in Japan. Your rate will be 3% and the 'Y'en is expected to appreciate at 3% per year. The other financing terms will remain the same. What is the new APV

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