Google has an asset beta of 1.65, a tax rate of 40%, and can typically borrow at 6%. The riskless rate is 1.5% and the expected return on the S&P 500 is 12.9%.Google is considering investing in a project with an initial cost of $400,000 and a yearly EBIT of $120,000 for the next 8 years. Google will borrow $350,000 for 8 years to finance the project, at a subsidized interest rate of 5%.

What is Googles unlevered cost of equity?

What is the NPV of this project if Google pays cash?

What is the NPV of the loan to Google?

What is the overall NPV of this project?