Question: Please answer within the hour 4. A project that generates EBIT of $2.50 per year forever (starting one year from now) requires a $15 investment,

Please answer within the hour

4. A project that generates EBIT of $2.50 per year forever (starting one year from now) requires a $15 investment, of which $5 is equity-financed and the firm plans to maintain $10 of debt in perpetuity. The firm's cost of unlevered equity is 10%, its cost of levered equity is 11.33%, its annual interest payments are $0.60, and there are no taxes. Use the "flow to equity" approach to determine this project's net present value. (Hint: start by finding levered cash flows)

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