1. Tybo Corporation adjusts its debt so that its interest expenses are 18% of its free cash flow. Tybo is considering an expansion that will generate free cash flows of $3 million this year and is expected to grow at a rate of 4% per year from then on. Suppose Tybos marginal corporate tax rate is 21%.

   If the unlevered cost of capital for this expansion is 10%, what is its unlevered value?

   		$53 million
   		$50 million
   		$48 million
   		$45 million