The following is relevant for the next four questions (10, 11, 12, 13). As CEO of HiBee, a grocery store chain, you are considering opening a nationwide branch of convenience stores, which you plan to name Grab&go. The initial cost of opening the stores is $120 million. Your financial analysts calculate that the chain of stores will produce free cash flow (FCFF) of $7million the 1st year, and that this free cash flow will grow by 10% over the following 10 years (i.e., g=10% for t=2 through t=11). After that, free cash flow is expected to grow at a constant rate of 4% forever. To determine the appropriate WACC for the project you assume that you are going to use 20% debt, and 80% equity (i.e., D/E = 0.2/0.8) in financing this project. To help determine the cost of equity, you have estimated that the levered beta on Seven Eleven, a successful convenience store chain (i.e. a pure play), is 1.0, the debt-to-equity ratio of SevenEleven is 0.5 and their tax rate is 42%. HiBee has debt outstanding with a before-tax cost (i.e. rd) of 7%. In addition, you know HiBee's tax rate is 45%, the risk-free rate is 5% and the market risk premium is 7%. 10. ** 10 points ** What is the equity beta (Be) for the Grab&Go project? 11. ASSUME your answer to #10 is 1.50. What is the cost of equity (re) for Grab&Go? 12. ASSUME your answer to question #11 is 10%. What is the WACC for Grab&GO? 13. Using the WACC you calculated in the above question (#12), what is the NPV ($mills) for Grab&GO