Suppose there is a similar company who has $300 million in debt outstanding at a rate of 8% and EBIT of $8 million in 2017. Assume that the Companys EBIT and debt are expected to grow at the same rate so that the interest cap will continue to be binding. Suppose the unlevered cost of equity is 8%, and the tax rate is 22%. Calculate the NPV and IRR of this

companys project with the following FCF and associated EBITs:

Year 0 1 2 3

FCF -2,350 500 300 200

EBIT 0 800 500 150