3. Consider Table 2. Table 2 CF3 CF4 CF2 CF1 110 110 CFO Project 75 40 60 (200 200) 200) 75 40 60 2 75 0.80 40 60 110 0.24 2.00 3.60 Interest Tax Shield Additional information for all projects 15% Cost (required return) on unlevered equity (%) Cost of debt capital (% Corporation tax rate (% Financing of each project: 10% 20% 100 Debt 100 uit Table 2. Calculate the value of project 1 assuming that the project is entirely equity-financed. (a) Consider (b) Consider Table 2. Project 1 is now financed using equal parts debt and equity( adjusted present value (APV) of project 1. Why is the value of Project 1 greater when debt finance is used to part-finance the project? nsider Table 2. Consider Project 2 which is als o financed using equal parts debt and equity. Calculate (c) Co the required return on levered equity and the (after-tax) weighted average cost of capital (WACc) Calculate the value of levered Project 2 using the after-tax WACC method (d) Consider Table 2. Consider Project 3. Further project. Calculate the value of Project 3 using the after-tax WACC method. assume that the firm uses debt only i.e. 200, to finance the