You are a consultant who was hired to evaluate a new product line for Gupta Enterprises. The upfront investment required to launch the product is 8 million. The product will generate free cash flow of 0.70 million the first year, and this free cash flow is expected to grow at a rate of 3% per year. Gupta has an equity cost of capital of 10.8% , a debt cost of capital of 8.12% , and a tax rate of 40% . Gupta maintains a debt-equity ratio of 0.50. a. What is the NPV of the new product line (including any tax shields from leverage)? b. How much debt will Gupta 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?