Intro International Shipping Lines is a U.S. based operator of container ships. The company is considering opening a new shipping hub in Greece: The hub will cost 55 million to build, and will generate cash flows of 10 million in each of the next four years. At the end of year 4, it can be sold for 33 million (after taxes). The current exchange rate is $1.16 per euro. The company expects the exchange rate to stay constant. To evaluate the proposal, the company needs to calculate its cost of capital. It has collected the following information: The company would have to pay an interest rate of 4% on new bonds. The company uses the CAPM to find the cost of equity. Its beta is 0.9, the yield on Treasury bonds is 1% and the expected return on the market (S&P 500) is 5%. The company wants to maintain is current capital structure. The value of bonds is $63 million and the market value of equity is $128 million. The U.S. tax rate is 21%. IB - Attempt 1/10 for 10 pts. Part 1 What is the cost of equity? 4+ decimals Submit IB - Attempt 1/10 for 10 pts. Part 2 What is the company's cost of capital? 4+ decimals Submit Part 3 IB- Attempt 1/10 for 10 pts. What is the NPV of this project (in $ million)? Hint: use the cost of capital exactly as calculated in the previous part. 1+ decimals