QUESTION-1 Part A At the beginning of year 1, International Delivery Company invests $8 million in a project that does not have a definite life. Dividends are expected to be $3 million in year 1. and with increase by 5% each year after that indefinitely. 1. Ignoring taxes and assuming a cost of equity capital for this company is 8%, compute the value of the firm's equity. (20 points) 2. Explain the method using your own words. (20 point) Part B Company A expects to have values of Assets, Liabilities and Net Profit as in the table below: - 2020 (Today) Book Value of Assets $40.000 Book Value of Liabilities $20,000 Net Profit $4,000 2021 $41,000 $17,000 $5,000 2022 $46,500 $18,500 $6.000 2023 $51,000 $21,000 $7,000 Assume that cost of equity is 8%. Calculate the value of equity using discounted cash flow model