Digit Co is considering introducing a new project of wristwatch. The company expects to the new project will increase DigitCo's free cash flow by $6 million per year, and this contribution is expected to grow at a rate of 3% per year thereafter. The new project's asset has similar risk with the asset of Digit Co and the company will maintain the current debt-tovalue ratio. Digit Co's cost of debt is 5%, its cost of equity is 10%, its marginal tax rate is 40%, and its current market value of balance sheet (unit: million) is as follows:

Assets Liabilities

Excess Cash 50 Debt 290

Existing Assets 600 Equity 360

Total Assets 650 Total D & E 650

a) What is the levered and unlevered cost of capital for new project, respectively? b) What is the total value of this project using WACC method? c) What is the unlevered value of this project? d) How much debt will Digit Co need to issue initially to fund this project to maintain the current debt-to-value ratio? e) What is the present value of interest tax shield for project? f) What is the total value of this project using APV method?