MICRO has a current market capitalization of $2 billion . It considers an investment with an initial outlay of $200 million that increases the annual cash flows by 30 million for the indefinite future (so one needs to pay taxes for the new profits). MICRO faces a tax rate of 25%, has 25% debt in its capital structure which will not vary with the new project. The firm debt is risk free at 7%. Current analysis shows that the business risk associated to the sector that MICRO operates is 10%. 1. (6 points) Using the DDM model, what is the value of dividends that MICRO promises to pay in the indefinite future before undertaking the project? (Make reasonable assumptions to answer this question) 2. (4 points) Compute the value of the project as if it was all equity financed. 3. (8 points) Use the Adjusted Present Value method to evaluate the project. 4. (3 points) What would be the value for PVGO