You are a consultant who was hired to evaluate a new product line for Sun Enterprises. The upfront investment required to launch the product line is $$7$ million. The product will generate a free cash flow of $$950,000$ in the first year, and this free cash flow is expected to grow at a rate of $4\%$ per year. Sun Enterprises$$ unlevered cost of capital is $13\%.$ The company$$s debt is risk$-$free, the risk$-$free rate is $4\%,$ and the tax rate is$30\%.$ Sun Enterprises maintains a debt$-$to$-$equity ratio of $40\%.$ The risk of the new product line is the same as the other businesses of Sun Enterprises.

a$)$ Compute the company$$s WACC. $(5$ marks$)$

b$)$ What is the NPV of the new product line $($including any tax shields from leverage$)?(5$ marks$)$

c$)$ What is the NPV of the new product line $($excluding any tax shields from leverage$)?(5$ marks$)$

d$)$ How much of the value of the new product line is attributed to the present value of interest tax shields?$(5$ marks$)$