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Sawtooth Machinery is considering a 4-year project to manufacture a new line of chainsaws. The project requires an investment and will year earnings before interest,

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Sawtooth Machinery is considering a 4-year project to manufacture a new line of chainsaws. The project requires an investment and will year earnings before interest, taxes, depreciation. per ne to zero over four years. and The investment will be depreciated straight borrow 40% of The tax rate is 35% and cost of levered equity is 13%. Sawuooth will in the 4th years. the project value at 6%. Debt will be paid down in one lump sum payment a) What are the unlevered cash flows in years o through year 4? (8 points What is the NPV of the project if it were all equity financed? (8 points)

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