Namo I. Short Questions (4 points each, total: 12 points) 1) If the risk-free rate is 6%, what is the value in year 0 of year at $600 and increases at an annual rate of 2%? a risk-free annual cash flow that starts next start in 2) You plan to start a project that will generate cash flows each year into perpetuity. Cash flows year 1 at $150k and are expected to grow by 3% each year. The cost of capital is r^ 996. You also plan to finance the project with debt starting at $150k in year 1, which is also expected to grow b year. Calculate the APV in year 0, Assume the tax rate is tc 21% and rD 6%. y 3% each