Suppose you have obtained the following information on NN. The firm's equity beta is 1.5, the firm's debt beta is 0.5, the risk-free rate is 3%, and the market risk premium is 6%. Next year, EBIT is expected to be $1,600,000. The firm's tax rate is 40%, the firm's Capex is expected to be $600,000, depreciation and amortization are expected to be $300,000, and networking capital is expected to increase by $60,000. The growth rate of cash fellows going forward is 2%, while the growth rate of the tax shield is expected to be 11%. The current market value of debt is $10,000,000 and the current market value of equity is $4,400,000.

1. Please solve for the value of the firm using APV.

2. Can we solve for the value of the firm using WACC if the tax shield grows at a different growth rate than the rest of the firm's cash flows? Why or why not?