Intro You are thinking of buying a startup for $40 million. The company will generate free cash flows of $6 million per year forever. You can take out an interest-only loan with an interest rate of 6%. The loan does not require any principal repayments and will go on forever. The weighted average cost of capital is 14% and the tax rate is 38%. Part 1 Attempt 1/1 for 10pts. What is the NPV of buying the startup (in $ million)? Correct NPV=FCF0+KWFCF=40+0.146=2.857(million) Part 2 Attempt 1/1 for 10 pts. How much of the $40 million should you borrow to achieve an internal rate of return of 29% on your equity investment? Part 3 Attempt 1/1 for 10 pts. How much of the $40 million should you borrow to achieve an internal rate of return of 80% on your equity investment