5. Pavos Inc. has EBIT of $20m every year forever. The firm is funded with $100m of debt and the rest with equity. The firm's cost of debt is 5%. If Pavos were an all-equity firm, its cost of capital would be 7.5%. Its corporate tax rate is 40%. In this problem, we are going to calculate Pavos's firm value using both the APV and WACC approach and show that both approaches yield the same value. (i) What is Pavos' unlevered cash flow per year? (ii) What is Pavos' levered cash flow per year? (ii) What is Pavos' firm value using the APV approach, assuming the only financing side effect is debt tax shield. (iv) What is Pavos's WACc? (v) What is Pavos's firm value using the WACC approach