You are a consultant who has been Wired to evatuate a new product ine for Markum Enterprises, The ughront investment riquited to launch the product ine is 511 milion The preduct free cauh flow of 50.78 milion the first year, and this free cash fow is expected to grow at a rate of 3% per year, Marhum has as equity cost of capital of 11.44, a debt cost of capitar of tax rate of 32%. Marksm maintains a debt-equity rasio of 0.80 a. What is the fvoy of the new product line (induding any tax shields from leveragel? b. How much debt will Markum intially take on as a result of taunching this product fine? e. How much of the product inn's value is aerbutsble to the present value of interest lax shiales? 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 $11 million. The product will generate free cash flow of $0.76 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 11.4%, a debt cost of capital of 5.49%, and a tax rate of 32%. Markum maintains a debt-equity ratio of 0.80. 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 ahsibutable to the present value of interest tax shields? You are a consultant who has been Wired to evatuate a new product ine for Markum Enterprises, The ughront investment riquited to launch the product ine is 511 milion The preduct free cauh flow of 50.78 milion the first year, and this free cash fow is expected to grow at a rate of 3% per year, Marhum has as equity cost of capital of 11.44, a debt cost of capitar of tax rate of 32%. Marksm maintains a debt-equity rasio of 0.80 a. What is the fvoy of the new product line (induding any tax shields from leveragel? b. How much debt will Markum intially take on as a result of taunching this product fine? e. How much of the product inn's value is aerbutsble to the present value of interest lax shiales? 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 $11 million. The product will generate free cash flow of $0.76 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 11.4%, a debt cost of capital of 5.49%, and a tax rate of 32%. Markum maintains a debt-equity ratio of 0.80. 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 ahsibutable to the present value of interest tax shields