Question 4 (total of 14 marks): Project Data Project life 2 yrs Initial investment in equipment $8m Depreciation of equipment per year for tax purposes $3m Unit sales per year 10m Sale price per unit $9 Variable cost per unit $4 Fixed costs per year, paid at the end of each year $2m Tax rate 30% Note 1: Due to the project, the firm will have to purchase $40m of inventory initially at t=0. Half of this inventory will be sold at t=1 and the other half at t=2. Note 2: The equipment will have a book value of $2m at the end of the project for tax purposes. However, the equipment is expected to fetch $1m when it is sold. Assume that the full capital loss is tax-deductible and taxed at the full corporate tax rate with no 50% CGT discount. Note 3: The project will be funded equity which investors expect to pay dividends of $7.5m pa, paid every year in arrears. Question 4a (4 marks): Find the projects unlevered Cash Flow From Assets (CFFA) at time t = 0. You do not need to find the NPV.* Question 4b (5 marks): Find the projects unlevered CFFA at time t = 1. You do not need to find the NPV. Question 4c (5 marks): Find the projects unlevered CFFA at time t = 2. You do not need to find the NPV.