Please help!

1. You are valuing STU Corporation's Alpha project using the APV method. The project will last for 5 years with EBIT of $200 thousand in year 1 and EBIT increasing by $50 thousand each year. The project requires a one-time equipment purchase of $500 thousand, which will be depreciated straight-line to a salvage value of 0. The equipment will also have no resale value. There will also be a one-time increase in net working capital of $50 thousand. The appropriate cost of assets is 12%. The only important side effect of nancing is the present value of debt tax shields. The Alpha project can support a constant $400 thousand in debt over the life of the project. STU Corp's tax rate is 40%, and the current interest rate applicable for the project's debt is 6% (assume this rate is also appropriate for discounting the tax shields). What is the APV of the Alpha project? What proportion of the value comes from nancing? (Assume tax shields are realized at the end of each year.)