Question 5 You are considering a project that will cost $50,000 to set up, and will pay out $18,0001,2,3 and 4 years from today. The unlevered beta for this project is 1.2 , the risk free rate is 6.5%, and the expected return on the S\&P 500 is 15%. Corporate taxes are 25%. a. What is the unlevered cost of equity for this project? b. What is the NPV of this project if you finance with all equity? c. You are considering borrowing $30,000 to finance this project, with repayment in 4 years. You could normally borrow at 7.5%. The Nebraska state government has offered to lend you the money at 6%. What is the adjusted present value of this project if you take the subsidized loan