question 1: what is the expected Return on the market.

Question 2: What is the cost of equity.

Question 3: what is the cost of debt for MPI.

1. ScanCo is considering a project that will cost $40,000 and will generate initial after-tax cash flows of $4,000, growing at a constant 4% annually. (Assume the cash flows are infinite and occur at the end of each year.) The firm has a D/E ratio of 1, an after-tax cost of debt of 8% and a cost of equity of 12%. If ScanCo is indifferent to the project, what subjective adjustment was added to the WACC when calculating the NPV of the project? +4%