Please solve using formula without excell and financial calculator and please show steps

11. Delta and Epsilon are separate firms that are both considering an oil exploration project. Delta currently operates an oil refining and distribution network and has an after-tax cost of capital of 15 percent. Epsilon owns ol fields and concentrates on oil production. Epsilon's after-tax cost of capital is 20 percent. The project under consideration has initial costs of $150,000 and anticipated annual cash inflows of $32,000 a year for ten years. There is no salvage. Which firm(s) should accept this project, if any? They have similar capital structures. Ignore taxes. A) Delta only B) Epsilon only C) both Delta and Epsilon D) neither Delta nor Epsilon E) can not be determined without further information Use the following information to answer questions 12 and 13. Anderson Inc is currently a 100% equity financed firm. There are 250 shares of common stock currently outstanding trading at S20 per share. Anderson Inc. is considering changing its capital structure by issuing $3,000 of perpetual debt at an interest rate of 8% and buying back common shares. The corporate tax rate is 40% and the share price is expected to increase to $24 per share Current Capital Proposed Capital Debt Equity Debt/Equity Ratio Share Price $5000 So $5000 $5000 $3000 $2000 3/2 $24 S20 12. IfEBIT is expected to be $1,000 per year in perpetuity, what is the price-to-earnings ratio under the proposed capital structure? A) 6.6 X B) 10.0 X C 13.2X D) 14.7 X E) 15.5 X 13. What is the break-even EBIT. That is at what level of EBIT are you indifferent between the current and proposed capital structures A) $200 B) $240 C) $320 D) S420 E) $480