[Question (10)- (18) are sharing the same information] After the recent emissions scandat, Volkswagen is considering a new marketing profect to improve its brand image. At time 0 , this project requires an operatieng expense of 540M to make a TV commercial. Volkawagen plans to air this commercial over the next two years, which costs $30M each year. Thanks to this newi commercial, you expect that the firm's revenue will increase by 80.40M in year 1 and by 82.92M in year 2 . You want to find the NPV of this project using three different methods. ROUNO ANSWERS TO 2 DECMMAL PLACES - Vollawogen's DeE ratio in 2 and the fim plans to keep trie rato fired. - Vokswsgen's coet af debt io 3%. Under the curnert capital atructure, the frims coos of equey is 12%. - Vokswagen's comporate tax rave is 50% Given the infor waina ahaian tha nomiact has the following free cash flows: [Ouestion (10)-18) are sharing the same information] What is Vosswagen's WACC? [Question (10)(18) are sharing the same information] What is the NPV of the project based on the WACC method? Show your work. For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac). [Question (10)-(18) are sharing the same information] PART II: APV method What is Volkswagen's unlevered cost of capital? For the toolbar, press ALT +F10(PC) or ALT+FN+F10 (Mac). Find the interest expense and interest tax shield each year if the amount of debt for the project is given as the following: [Question (10)(18) are sharing the same information] What is the present value of the interest tax shield? (Hint Choose oppropriotely the discount rate to discount for future interest tax shields fi.e. r rrs) For the toolbar, press ALT+F10 (DC) or ALT+FN+F10 (Mac). [Question (10)(18) are sharing the same information] Finally, what is the NPV of the project based on the APV method? Show your work, For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). RART III:FTE method Comf QUESTION 18 [Question (10)-(18) are sharing the same information] What is the NPV of the project based on the FTE method? Show your worki For the toollbar, press ALT+F10 (PC) or ALT+FN+F10 (MaC). [Question (10)- (18) are sharing the same information] After the recent emissions scandat, Volkswagen is considering a new marketing profect to improve its brand image. At time 0 , this project requires an operatieng expense of 540M to make a TV commercial. Volkawagen plans to air this commercial over the next two years, which costs $30M each year. Thanks to this newi commercial, you expect that the firm's revenue will increase by 80.40M in year 1 and by 82.92M in year 2 . You want to find the NPV of this project using three different methods. ROUNO ANSWERS TO 2 DECMMAL PLACES - Vollawogen's DeE ratio in 2 and the fim plans to keep trie rato fired. - Vokswsgen's coet af debt io 3%. Under the curnert capital atructure, the frims coos of equey is 12%. - Vokswagen's comporate tax rave is 50% Given the infor waina ahaian tha nomiact has the following free cash flows: [Ouestion (10)-18) are sharing the same information] What is Vosswagen's WACC? [Question (10)(18) are sharing the same information] What is the NPV of the project based on the WACC method? Show your work. For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac). [Question (10)-(18) are sharing the same information] PART II: APV method What is Volkswagen's unlevered cost of capital? For the toolbar, press ALT +F10(PC) or ALT+FN+F10 (Mac). Find the interest expense and interest tax shield each year if the amount of debt for the project is given as the following: [Question (10)(18) are sharing the same information] What is the present value of the interest tax shield? (Hint Choose oppropriotely the discount rate to discount for future interest tax shields fi.e. r rrs) For the toolbar, press ALT+F10 (DC) or ALT+FN+F10 (Mac). [Question (10)(18) are sharing the same information] Finally, what is the NPV of the project based on the APV method? Show your work, For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). RART III:FTE method Comf QUESTION 18 [Question (10)-(18) are sharing the same information] What is the NPV of the project based on the FTE method? Show your worki For the toollbar, press ALT+F10 (PC) or ALT+FN+F10 (MaC)