Click Submit to complete this assessment Question 6 of 6 Question 6 5 points You are trying to value the following project for your company. You know that the project will generate free cash flows in perpetuity that will grow at a constant annual rate of 2% after year 2. The applicable interest rate for this project is 106. What is the NPV of this project Express your result in S-millions (do not include the symbol in your answers. If you calculate a negative NPV enter a negative number. Free Cash Flow Forecasts (in S-millions) Year 0 1 2. Free Cash Flows 19 24 Moving to another question will save this response. Questions Question 5 5 points You are tasked with examining a project for Bore Industries. You know that without the project Bore will generate pre-tax income of 560 million each year in perpetuity. You how forecasted the following financial Information of the project. Assuming a marginal tax rate of 25%, which of the following statements is true? Project Forecasts in S-thousands Year 0 2 EBIT (5,000) 10,000 5,000 Taking this project will result in additional taxes of 51,250,000 for the firm at time. This will decrease the free cash flow of the project at time 0. Oll . Taking this project will result in additional taxes of $1,250,000 for the firm at time 0. This will have no effect on the free cash flow of the project at time, O III. Taking this project will result in tax savings of $1,250,000 for the firm at time. This will have no effect on the free cash flow of the project at time 0. 1. Taking this project will result in tax savings of $1,250,000 for the firm at time. This will increase the free cash flow of the project at time Activate Window