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A project costs $ 3 7 9 at t = 0 and generates unlevered after - tax cash flows of $ 5 0 per year

A project costs $379 at t=0 and generates unlevered after-tax cash flows of $50 per year forever. The project's unlevered cost of capital is 10.5%. The initial cost of the project is paid for with a combination of debt and equity. Debt contributes $77 and will earn interest at 2.0% forever. (The debt is perpetual, it never matures. Assume the debt tax shield cash flows have the same risk profile as the debt cash flows. The debt is fairly priced. All of the project NPV accrues to the equity holders.) The tax rate is 17%.Correct Answer: 110.3
What is the levered NPV of the project? (Calculate using the APV method.) Give your answer in dollars to the nearest $0.1

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