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7. Consider the following (market-value) data for lota Industries: (11 points) Assets Liabilities Debt Cash Existing Assets 250 1200 650 800 Equity lota has an equity cost of capital of 14% and a debt cost of capital of 7%. Marginal corporate tax rate = 35%. a) If lota maintains a constant debt-equity ratio, compute the NPV of a project with average risk and the following expected free cash flows: Year 0 1 2 3 Free Cash Flow -$250 $75 $150 $100