1. You are trying to come up with an estimate for the stock price of the Boeing Company. As part of this analysis, you plan to calculate Boeing's required return on equity using the CAPM formula. Which number below should you use as the risk-free rate in that equation? Group of answer choices:

a) Boeing's debt yield to maturity

b) The 3-month U.S. Treasury yield

c) The 1-year U.S. Treasury yield

d) The 30-year U.S. Treasury yield

e) The expected risk premium on the S&P 500 of 5%

f) All of the above

2. A real estate firm is building a new apartment tower (similar to its other developments). It will require spending $17 million today. This project will then generate $2 million in free cash flow each year for the next 20 years (from t=1 to t=20). The firm is financed half with equity and half with debt (it has no excess cash). The firm's equity beta is 1.2, debt yield to maturity is 6.0%, and tax rate is 20%. The expected return on the S&P500 Index is expected to be 7.0% each year and the relevant risk-free rate is 2.0%. What is the NPV of this project (in millions)?