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Pear Inc. is considering an investment in a new project. This project is expected to increase Pear Inc.'s free cash flow by $5 million the

Pear Inc. is considering an investment in a new project. This project is expected to increase Pear Inc.'s free cash flow by $5 million the first year, and this contribution is expected to grow at a rate of 1% per year from then on. Pear Inc. estimates an initial investment on the project of $120 million and this is the only investment expected. Part of this investment will be financed with debt in the amount of $99,010 million. Consider that the CAPM holds and Pear Inc.'s equity beta is 1,2, the

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