1. Suppose company is considering an investyenx in a facility of $65,000,000. Suppose the invested is expected to return cash in the following manner Yearl-$17,000,000 Year?- $23,000,000 Year - 18,000,000 Year 4- $12,0 Suppose in order to finance this investment they plan on using a combination of cash and stock. Our bankers have advised the company to issue 60% bonds at a rate of 3.5%, and 40% stock at a rate of 19% Is the project worth considering? Why or why not? (answer must have the actual NPV figure) 2. Consider a one year bond at $660 with a coupon of 7%. What is the yield to maturity? Suppose there's a 30% probability of default, and in the event of a default there would be a 65% recovery rate. Suppose in the event of a default the company would pay zero interest back. What is the expected retum on the bond? 3. Using the attached financial statements, calculate free cash flow? If positive, what do you suggest the simpany does with the money? (no partial credit if any of the steps are wrong) 4. You buy a building for 1.1 Million fully rented. The ROI on the building us 19.3%, and inflation is 3.8%. What is the nominal rate of retum? What is the real rate? (nominal rate = real rate + inlilation + (inflatinusseal rate, worth 5) 5. We are considering 2 investments for purchase. One is Google and the other is Amazon. Google has a beta of 2.7 and Amazon has a Beta of 2.4. Assume a risk free rate of 3%, and an expected market return of 7%. Using CAPM, what are the expected reutns on each stock