Adjusted Present Value (APV) Problem Aardvark Corp. is considering a project which costs $100,000 and generates cash inflows of $250,000 per year with costs including depreciation of $185.000 per year. The project will be financed with all equity with the cost of equity capital (ro) of 15%. The tax rate is 34%. a) Find the NPV of the project with all equity financing. b) Now suppose they choose to finance the project with 45% debt with a before tax cost (ra) of 8%. Find the tax shield of interest and the NPV of financing effects. c) Find the adjusted present value (APV). d) Find the required return on equity if the project is financed with 35% debt and 65% equity Adjusted Present Value (APV) Problem Aardvark Corp. is considering a project which costs $100,000 and generates cash inflows of $250,000 per year with costs including depreciation of $185.000 per year. The project will be financed with all equity with the cost of equity capital (ro) of 15%. The tax rate is 34%. a) Find the NPV of the project with all equity financing. b) Now suppose they choose to finance the project with 45% debt with a before tax cost (ra) of 8%. Find the tax shield of interest and the NPV of financing effects. c) Find the adjusted present value (APV). d) Find the required return on equity if the project is financed with 35% debt and 65% equity