SunHow, a manufacturer of solar-electric panels, is seeking to determine if they should go forward with their new top secret project: Project99. As such, youve been asked to compute the fair NPV of the project.

Unlike SunHows core focus of solar panels, Project99 will be focused on the manufacture, distribution and sale of non-alcoholic beverages.

In order to pay for the upfront capital expense of Project99, SunHow is borrowing $42.7 million from a bank, over a 8-year term, at an effective annual interest rate of 8.68%.

Youve estimated the WACC of SunHow to be 9.78% on an EAR (effective annual rate) basis.

Youve also identified 3 other companies that primarily make non-alcoholic beverages. For each of the three companies, you estimated their WACC, and then computed the average of their WACCs to be 7.18% per year.

SunHow has a tax rate of 37%.

Youve also estimated all of the free cash flows (FCFs) for Project99 from now until the end of the project.

Your next step is to compute the fair NPV of the projects FCFs (and then use the NPV Rule).

When you do so, what discount should you use to determine the projects fair NPV?

Enter your answer as a PERCENT, not as a decimal, with at least 4 digits of precision.

11b) Trans8, a manufacturer of electronic surveillance equipment, is seeking to determine if they should go forward with their new project, code named MicroCam2 which extends Trans8s line of cameras to better compete with other firms in the same industry. As such, youve been asked to compute the fair NPV of the MicroCam2 project.

In order to pay for the upfront capital expense of the MicroCam2 project, Trans8 is borrowing $3.9 million from a bank, over a 10-year term, at an effective annual interest rate of 9.7%.

Youve estimated the WACC of Trans8 to be 6.03% on an EAR basis.

Youve also estimated all of the free cash flows (FCFs) for the MicroCam2 project from now until the end of the project.

Trans8 has a tax rate of 20%.

Your next step is to compute the fair NPV of the projects FCFs.

When you do so, what discount should you use to determine the projects fair NPV?

Enter your answer as a PERCENT, not as a decimal, with at least 4 digits of precision.