Question 1 (50%) Bilibilr' is a Chinese video sharing website based in Shanghai , themed around animation , comics , and games (ACG ), where users can submit , view and add overlaid commentary on videos . Bilibilr' is expecting a period of intense growth and has decided to retain more of its earnings to help finance that growth . As a result, it is going to reduce its annual dividend by 20% a year for the next two years. After that, it will maintain a constant dividend of $1.50 per share. Last year, the company paid $2.50 as the annual dividend per share. (a) Evaluate the market value of the Bilihili if the required rate of return is 14.5 Bi: (1)) The expected return on the market portfolio is 11% and the Treasury bill rate is 3%. If the beta of Eilihilr' is 1.25 , determine its required rate of return . Bilibili is now considering the following two mutually exclusive projects (Project Brightness and Project Seamless) to upgrade its live streaming capability for the Winter Olympic 2022. The following table show the aftertax cash flows ofthe two projects. After-tax cash flows (5) Year PrOject Brightness Pr0ject Seamless 5,000,0 00 5,0 00,000 1 1,550,000 3,200,000 2 1,550,000 2,200,000 3 1,550,000 1,200,000 4 1,550,000 5 1,550,000 Use the required rate of return calculated at Question 1 (h) (c) Advise Bilihili which project the firm should select by using NPV method. (d) Using equivalent annual annuity (3AA) method, evaluate which project Eilibili should choose (e) Based on your nding of (a) and (h), which project should be selected and explained your selection criteria