1. Use the information in the tables below to answer the following questions: HT Enterprises Market Value Balance Sheet (s Millions) and Cost of Capital Liabilitie Cost of Assets Capital Cash 0 Debt 200 Debt 6% Other Assets 500 Equity 300 Equity 12% Tax rate 35% New Project Free Cash Flows Year 0 1 Free Cash Flows ($100) $40 2 3 $50 $60 b. The company plans to invest in a new project. Assuming that the new project is of average risk for HT Enterprises and that the firm wants to maintain a constant debt-equity ratio calculate the net present value of the project. I (3 points) c. Alternatively, assume that the project will be financed with 60% debt (D/V = 60%). How would it affect the WACC and your investment decision? (Assume that the pre-tax cost of debt will remain unchanged). (6 points)