the project showin in this has been valued using the wacc approach. calculate the value of the project using the apv approach (ie separate the value into the unlevered value and the value of the tax shield). what is the unlevered cost of capital?

This is only info given and the weights of debt and equity are given along with the return on debt and return on equity.

Percent of Liabilities 40% Return 5% 12% Debt Equity Tax Rate 35% WACC 8.8% Years 1 Sales COGS Depreciation EBIT Taxes NOPAT + Depreciation $3,000,000 ($1,800,000) ($500,000) $700,000 ($245,000 $455,000 $500,000 ($500,000) 0 $455,000 CAPEX AWC PFCF FFCF Firm Value $5,194,064