This is for the course capital budgeting and financial modeling.

4. Assume a . Your company is considering a new project at a cost of $12 million. b. The project may begin today or in exactly one year. e. You expect the project to generate $1,500,000 in free cash flow the first year if you begin the project today. d. Free cash flow is expected to grow at a rate of 3% per year. c. The risk-free rate is 4%. t. The appropriate cost of capital for this investment is 11%. (20 points) a) What is the NPV of the project today? b) What is S* (the current value of the project without the "dividend" that will be missed) is? (hint: S*=S- PV(dividend)) What is the present value of the cost to begin the project in one year (PV(k)) is 4)To compute option value, if d1=1.4868, what is N(d1)