4. Cost of Capital: For the next five years, your firm will be paid S$7,000,000 per year for providing technology to the Singapore government. The exchange rate of S$ = $.60 is expected to stay during the five year planning horizon. The risk free rates are 6 percent and 8 percent, respectively, in the U. S. and Singapore. Your firm's beta is 1.5 and the U.S. annual market return is 12 percent. Your firm's capital is typically financed by 60 percent debt at the cost of 10 percent. Currently, your firm is subject to a 30 percent corporate income tax rate in the U. S. Today, your firm received an offer from a competitor to sell the Singapore business at $10 million after tax. Before entertaining the offer, your boss asked you to suggest the required rate of return for the project. How could you help her? 4-1. Calculate the most plausible cost of capital for the project (5 pts.) 4-2. BONUS: Formulate your suggested analysis (solution) for Accept/Reject decision using cash flow estimates from the project. (5 pts.) Just formulate! No need to calculate the actual NPV solution