a, b, c

SLUTU. U U Mio P18-9 (similar to) Question Help You are a consultant who has been hired to evaluate a new product line for Markum Enterprises. The upfront investment required to launch the product line is $15 million. The product will generate free cash flow of $0.73 milion the first year, and this free cash flow is expected to grow at a rate of 5% per year Markum has an equity cost of capital of 112%, a debt cost of capital of 5,85%, and a tax rate of 35% Markum maintains a debt-equity ratio of 0.40. a. What is the NPV of the new product line (including any tax shields from leverage ? b. How much debt wil Markum initially take on as a result of taunching this product line? c. How much of the product line's value is attributable to the present value of interest tax shielde? What is the NPV of the new product Ine (including any tax shields from leverage)? The Now of the new product tres milion (Round to two decimal places)