a) A company wants to expand to 2 new locations in New York. Company executives believe that this would initially cost $20 Millions to expand. The yearly FCF will begin at $4 milion in year 1 and grow at 3% per year. If the unlevered cost of equity for the grocery store Industry is 11%what is the NPV of this expansion? (Answer in $ million)

b) Next, the company explores the idea of using debt financing, the first option is to use $18 million of debt and hold debt at this level forever. The cost of debt (and the interest rate) is 6%. The tax rate for is 20% what is the NPV of the project under this first financing structure? (Answer in $ million)

c) The second financing option is to use a constant D/V ratio. Suppose the company wants to use a D/V of 0.28. the cost of debt is 6%. The tax rate is 20%. What is the NPV of the project under this second financing structure?