Firm B, a bike manufacturer, has 20 million shares trading at $40.0. The book value of its interest-bearing debt is $390m, $100m in cash, and its equity's book value is $500m. Its debt's rating is AA, its interest rate is 4.8% and the yield-to-maturity (YTM) of AA-rated bonds is about 7.5%. Its equity beta is 1.5 and the corporate tax rate is 35%. The YTM of long-term government bonds is 2% and the market risk premium currently used is 6%. Firm B has a bike project costing $50m and yielding a free cash flow of $3.5m per year forever. The project would be financed with a new 15-year $40m senior loan with a 5% interest rate. a. What is Burgundy's weighted average cost of capital? b. What is the project's opportunity cost of capital? What is the project's NPV? a. C