(10) Joker is considering a new project tha This is expected to earnings before interest and taxes (EBIT) of $1 rate is 25%. The unlevered cost of capital (r.) is 12%. 9. t requires an investment of $100 million in machinery. 7 million per year forever. The tax a. Calculate the base-case NPV. b. Joker plans to use $40,000,000 The bonds have a coupon rate of 5% and a yield of 5%. find the value of the project. Should he take the project? Explain. in bonds. The remaining funds will come from retained earnings Use the adjusted present value (APV) to