1. Calerie Cow Catering is looking to expand its bakery options. They eurrently expect earnings of so.6s per share this upooming yoar. Their opportunity eost of capital (think discount rate or i) is 14.5%. They plan on pursuing two pairy projects in the upeoming yearn. The first new pastry is the Cattle Rancher Cromut. This will require an initial investment of all available earnings next year. Once it is on the market, it is project ted to return 80.90 per dollar invested. This will grow by 35% for 2 years. Then its earnings are projected to decline by 75% a year forever. The second product is a new line of mini cupcakes called Bovine Bites. It will require the investment of all earnings for 2 years. It will provide a return of $1.40 per share the first. year. This will grow by 60% for 2 years before reaching a steady growth of 5% forever. (a) Before beginning any PV calculations, draw the timeline for the projected costs and earnings of the two projects. Include 7 years in the timeline for each project. (Consider the following hints as you are drawing the timelines. Since the first project requires the investment of all earnings, you will have to wait to invest in the second project. Also, when calculating the potential earnings you can invest in the second project, be sure to include earnings from the first project in addition to the original EPS - we assume that won't change as the firm will continue its previous operation.). Please calculate everything on a per share basis. (b) What is the PV generated by the first project through the end of year 4 (periods 04 on your timeline)? (c) What is the PV of the remaining earnings of the first project, periods 5 and beyond? (hint: use the appropriate annuity or perpetuity formula and then discount it the appropriate number of years). (d) What is the (net) PV of the Cattle Rancher Cronut project? (e) What is the PV generated by the second project through the end of year 6 (periods 06 on your timeline)? (f) What is the PV of the remaining earnings of the second project, periods 7 and beyond (hint: use the appropriate annuity or perpetuity formula and then discount it the appr priate number of years). (g) What is the (net) PV of the Bovine Bites project