Zoso is a rental car company that is trying to determine whether to add $25$ cars to its fleet. The company fully depreciates all its rental cars over five years using the straight$-$line method. The new cars are expected to generate $$175,000$ per year in earnings before taxes and depreciation for five years. The company is entirely financed by equity and has a $35$ percent tax rate. The required return on the company's unlevered equity is $13$ percent, and the new fleet will not change the risk of the company.

a$.$ What is the maximum price that the company should be willing to pay for the new fleet of cars $($i$.$e$.,$ the maximum initial investment amount you would pay$)$ if it remains an all$-$equity company? $[$Assume that the depreciation tax shields can be discounted using a lower rate of $8\%].$

b$.$ Suppose the company can purchase the fleet of cars for $$480,000$ as the initial investment. Additionally, assume the company can issue $$390,000$ of five$-$year, $8$ percent debt to finance the project. Assume there is no floatation cost. All principal will be repaid in one balloon payment at the end of the fifth year. Calculate NPV ${?}^{\text{A}\text{l}\text{l}\text{E}\text{q}}$ and NPV$($Debt Fin$).$ Thus, what is the adjusted present value $($ANPV$)$ of the project?