Omicron Industries' Market Value Balance Sheet ($ Millions) and Cost of Capital

Assets			Liabilities			Cost of Capital
Cash	0		Debt	200		Debt	6%
Other Assets	500		Equity	300		Equity	12%
						Tax rate	35%

Omicron Industries New Project Free Cash Flows

Year	0	1	2	3
Free Cash Flows	($110)	$40	$50	$60

Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.

Using the remaning cash flows in year 2 and 3, the levered value of Omicron's new project in year 1 in million is?

The interest tax shield provided by Omicron's new project in year 2 in million dollars is?