1. Borax Inc. is planning to invest US$30 million (capex) in a project that will generate free cash flows (FCF) of $18.93 million for four years. Borax has 2 million shares outstanding trading at $100 per share; and its equity cost of capital amounts to 16%. Borax has $200 million in debt at an average cost of debt of 8%. Borax corporate tax rate is 50%. Calculate Boraxs rwacc and the levered value of the investment (V₀) net of costs (or V₀ capex), rounding to first decimal:

   	a.	9.0% ad $54.4 million
   	b.	8.0% and $60.0 million
   	c.	10.0% and $30.0 million
   	d.	12.0% and $45.3 million