Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,220. The opportunity cost of capital is r = 0.22. The borrowing rate is r_D = 0.09, and the tax shield per dollar of interest is T_c = 0.21. ( Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) a. What is the projects base-case NPV?

b. What is its APV if the firm borrows 27% of the projects required investment?