You are a consultant who has been hired to evaluate a new product line for Markum Enterprises. The upfront investment required to launch the product line is $ $6$ million. The product will generate free cash flow of $ $0\mathrm{.}79$ million the first$$ year, and this free cash flow is expected to grow at a rate of $3\%$ per year. Markum has an equity cost of capital of $11\mathrm{.}5\%,$ a debt cost of capital of $6\mathrm{.}59\%,$ and a tax rate of $28\%.$ Markum maintains a$$ debt$-$equity ratio of $0\mathrm{.}40.$

a$.$ What is the NPV of the new product line$($including any tax shields from$$ leverage$)?$

b$.$ How much debt will Markum initially take on as a result of launching this product$$ line?

c$.$ How much of the product$$ line's value is attributable to the present value of interest tax$$ shields?