Company XYZ keeps a constant debt-to-equity ratio and has a pre-tax wacc equal to 8.25%. The company is planning to undertake a new project that will require an initial investment of 70,000,000 and that has assets whose risk is comparable to the risk of the assets in place. The initial investment will be depreciated straight-line over 7 years. Nevertheless, the project life is 5 years and the assets will be liquidated for 25,000,000 at the end of the life of the project. The depreciation tax shield is as risky as the company's debt. The cost of debt (interest rate) is 3.50%. The corporate tax rate is 26%. The company will issue an amount of debt equal to 30,000,000. The debt will be reimbursed according to a pre-determined schedule known in advance with no uncertainty. The table below reports the Net Income and outstanding debt values at the end and beginning of each year, respectively. YEAR 1 2 3 4 5 Net Income (End of year) 12,000,000 14,000,000 23,000,000 14,000,000 11,000,000 Debt (Beginning of year) 30,000,000 20,000,000 20,000,000 15,000,000 5,000,000 a) Compute the unlevered value of the assets at time 0. [15 Points] b) Compute the NPV of the project. [10 Points]