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 $$9$ million. The product will generate free cash

flow of $$0\mathrm{.}78$ million the first year, and this free cash flow is expected to grow at a rate of $5\%$ per year. Markum has an equity cost of capital of $11\mathrm{.}3\%,$ a debt cost of capital of $6\mathrm{.}91\%,$ and a tax rate of $22\%.$

Markum maintains a debt$-$equity ratio of $0\mathrm{.}60.$

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?