1. Robertson Intel Company (RIC) has an equity cost of capital of 9%, market capitalization of $20 billion, and an enterprise value of $60 billion. Suppose RICs debt cost of capital is 5.0% and its marginal tax rate 40%. RIC will implement a project delivering Free Cash Flows of $105 million in year 1; $110.25 million in year 2; and $115.76 million in year 3. RICs WACC and the levered value (V_L) of the project are:

   	a.	5.0% and $300 million
   	b.	6.33% and $287.85 million
   	c.	6.0% and $289.66 million
   	d.	4.0% and $301 million