CBC Inc. is evaluating a project with various methods. The project requires initial investment of $62,000 and will generate annual before-tax cash flow of $9,000 for 20 years. This project has an asset beta of 0.72. The market risk premium is 7% and the risk-free rate is 3%. The cost of debt is 6% and the tax rate is 30%.

1. a) Assume the project will be financed at its target debt-equity ratio of 0.35, calculate the NPV of this project using the WACC method.

2. b) Assume CBC borrows $12,800 to finance the project and repay the loan when the project ends, calculate the NPV of the project using the APV method.

3. c) Same assumption as past b), calculate the NPV of the project using the FTE method.