Your firm is considering building a $ $592$ million plant to manufacture HDTV circuitry. You expect operating profits$($EBITDA$)$ of $ $137$ million per year for the next ten years. The plant will be depreciated on a$$ straight$-$line basis over ten years$($assuming no salvage value for tax$$ purposes$).$ After ten$$ years, the plant will have a salvage value of $ $296$ million$($which$,$ since it will be fully$$ depreciated, is then$$ taxable$).$ The project requires $ $50$ million in working capital at the$$ start, which will be recovered in year ten when the project shuts down. The corporate tax rate is $35\%.$ All cash flows occur at the end of the year.

a$.$ If the$$ risk$-$free rate is $4\mathrm{.}4\%,$ the expected return of the market is $11\mathrm{.}3\%,$ and the asset beta for the consumer electronics industry is $1\mathrm{.}74,$ what is the NPV of the$$ project?

b$.$ Suppose that you can finance $ $474$ million of the cost of the plant using$$ ten$-$year, $9\mathrm{.}2\%$ coupon bonds sold at par. This amount is incremental new debt associated specifically with this project and will not alter other aspects of the$$ firm's capital structure. What is the value of the$$ project, including the tax shield of the$$ debt?