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Do what you can, thanks! The company A is planning to invest in a new business area. Estimates of the cash flows of the investment

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The company A is planning to invest in a new business area. Estimates of the cash flows of the investment life cycle are as follows: Year FCF [M$) 0 1 2 3 4 -6.2 1.5 3 3.7 1 The appropriate cost of capital is still needed to calculate the net present value. The estimate of risk-free return is 2.5% and the expected return on the market portfolio is 7.5%. The company has found three benchmark companies (B, C and D) whose shares are traded on the securities market and whose business is comparable to the planned investment. B is a fully equity company with a Be of 1.4. The cost of capital ru corresponding to the business risk of B is 9.50% In C's market value balance sheet, the debt-to-equity ratio is 0.125. C has a e of 1.89 and the liabilities are estimated to be risk free. In C's market value balance sheet, the share of net debt [%] of the total value of the company is 11.11%. (Bu corresponding to C's business risk is 1.68). The cost of capital cu corresponding to C's business risk is 10.9. In D's market value balance sheet, the debt-to-equity ratio is 0.25. The BE of D is 2.28. Based on the yield on the company's bonds, the cost of borrowing is estimated at 3.4%. The cost of equity for D is 13.9%. Calculate the cost of capital u corresponding to the business risk of D. On the basis of the above calculations and discretion, the company decides on the cost of investment in the investment calculation (ru) 10%. Calculate the net present value of the investment [K ]. The company estimates that a net debt share of the company value (Debt-to-value ratio) is 40%, and the company seeks to maintain this capital structure. Thus, in the investment calculation, the calculation rate should be used as a so-called " AFTER-TAX WACC. What is this rwace if the company's income tax rate is 20% and a borrowing cost 4.0%? What is the net present value of the investment project [k $] corresponding to the cost of capital calculated in the previous section? What is the present value of the interest tax shield [k $] caused by the investment

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