Given the following cash flows:

Year

$0$

$1$

$2$

$3$

CF

$-3,500$

$600$

$1,000$

Cash flow will grow at a constant rate g$=6\%$

We choose the following capital structure plan:

Debt

Equity

Plan

$30\%$

$70\%$

Equity Benchmark:

The unlevered beta is $2,$ market return is $16\%,$ risk$-$free rate is $3\%.$

Debt Benchmark:

Par:$100,$ Annual Coupon: $6\%,10-$year to maturity, Selling at $$88\mathrm{.}43$

Tax rate is $40\%.$

What is the NPV of the project?

Given the following cash flows:

Year

$0$

$1$

$2$

$3$

CF

$-3,500$

$600$

$1,000$

Cash flow will grow at a constant rate g$=6\%$

We choose the following capital structure plan:

Debt

Equity

Plan

$30\%$

$70\%$

Equity Benchmark:

The unlevered beta is $2,$ market return is $16\%,$ risk$-$free rate is $3\%.$

Debt Benchmark:

Par:$100,$ Annual Coupon: $6\%,10-$year to maturity, Selling at $$88\mathrm{.}43$

Tax rate is $40\%.$

What is the NPV of the project?

$1,728\mathrm{.}42$

$917\mathrm{.}53$

$2,231\mathrm{.}98$

$860\mathrm{.}42$