The company considers taking up an investment project. They need to invest 30 million in the project and total expenses are 70% of revenue with no depreciation expense.

(Company has 8.5 million shares of common stock outstanding and 200,000 7.5% semiannual bonds outstanding, and the par value is $1,000 each. The common stock currently sells for $34 per share and has a beta of 0.9. The bonds have 15 years to maturity and currently sell for 93% of par. The market risk premium is 7%, T-bills are yielding 5%, and RST Company's tax rate is 35%)

the firm's market value capital structure: E/V=60.8421%, P/V=39.1579%

the value of the rate( WACC:8.9764%)

QUESTIONS

a) What is the NPV break-even sales revenue?

b) Calculate the rate of return of debtors and investors at the NPV break-even sales.

c) Are debtors and investors getting back the rate of return they expected

Please show the formula and steps, thank you