Suppose SPU has a project opportunity. The project has an initial cost of $200 million. The projects expected cashflows are $6.5 million the first year and will grow at 1% per year thereafter. SPU has an equity cost of capital of 5%, a debt cost of capital of 3%, a capital structure of 50% equity & 50% debt, and has a tax rate of 20%. What is the NPV of this project (in millions)?

Suppose SPU has a project opportunity. The project has an initial cost of $10 million. The projects expected cashflows are $1 million the first year, $2 million the second year, and will increase by 1% per year thereafter. SPU has an equity cost of capital of 9%, a debt cost of capital of 5%, a capital structure of 40% equity and 60% debt, and has a tax rate of 27%. What is the NPV of this project (in millions)?

The market risk premium is 7%. The CAPM required rate of return on a stock with a beta of 1.25 is 11%. The risk-free rate is _____%?

Suppose SPU has a market capitalization of $250 million and $50 million in outstanding debt. SPUs debt cost of capital is 5% and its WACC is 10%. If the corporate tax rate is 25%, Intels equity cost of capital is _____%.