25 Find the new NPV under the above conditions. Take all to 2 decimal points, e.g., x.xx.aAdding equity increases the cost of equity by 1.5 percent and cost of debt stays the same.bAdding debt increases the cost of debt by 1.5 percent and the cost of equity stays the same.cYou fund the new service with all equity but the cost of equity increases by 3 percent. The cost of debt stays the same.dYou fund the new service with all debt but the cost of debt increases by 2.5 percent and the cost of equity increases by 3.5 percent.

The following information is from recent balance shects and income statements for Classic Films Studios. The company is planning to launch a new service next year that is expected to last for 8 years before it will become out of date/obsolete. Seniot management needs to make a decision about whether or not to invest in the assets that will generate the cash flow from assets this new service will generate. The Marketing New Product Development Group has provided estimates for the amount of assets noeded and the expected cash flow from assets for the cight years. As a miember of the Finance Group you are being asked to advise the company's Chief Financial Officer about the merits of investing in this new service. To do that, you will need to use the provided to answer address the problems/questions found below. Many of the problems do not have to be answered using Fxcel, bowever you will need to use some Excel functions to find the new service's IRR and he NPVs under the differeat funding scenarios. You can refer to all documents, including answers to the problems you have done during the semester, while working on this exam. And you are weloome to ask questions about it Put your answers in the separate Final Answer Sheet Wond document and upload it in Canvas. If you want to show your wotk, do that in a separate document. Questions 1 through 23 are worth 2 points each. 24a24d and 25a25d are worth 3 points cach, and question 26 is worth 5 points for a total of 75 points