1. Luckhit Marteen (LMT) is considering a $50 million investment (capex) to launch a new product line. The project is expected to generate a free cash flow of $10 million per year and its unlevered cost of capital is 5%. To fund the investment LMT will take on $200 million in permanent debt. The corporate tax rate is 25%. Estimate the NPV of the project.

   	a.	$175 million
   	b.	$150 million
   	c.	$200 million
   	d.	$250 million