Use the information for the questions 11 to 17 below.

Suppose Chittenden is considering the acquisition of another firm in its industry. The acquisition is expected to increase Chittendens free cash flow by $5 million the first year and this contribution is expected to grow at a rate of 4% per year from then on. The acquisition cost of $110 million will be financed with $95.24 million in new debt initially. Assume the companys cost of equity is 12.3%, its cost of debt is 8.5%, its tax rate is 40% and Chittenden will maintain its debt-equity ratio of 2. Suppose you are hired to value this acquisition using APV and FTE methods.

What is Chittendens unlevered cost of capital in percentage?

What is the V^U of the acquisition in million dollars?