You are evaluating a project that requires an investment of $90 today and provides a single cash flow of $115 for sure o

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You are evaluating a project that requires an investment of $90
today and provides a single cash flow of $115 for sure one year
from now. You decide to use 100% debt financing, that is, you will
borrow $90. The risk-free rate is 5% and the tax rate is 40%.
Assume that the investment is fully depreciated at the end of the
year, so without leverage you would owe taxes on the difference
between the project cash flow and the investment, that is, $25.
For parts a-c, fill in the missing fields. For this question,
first calculate all parts without rounding the solutions. Then,
when inserting your solutions in the fields, round
to two decimals . Also, use dot as the
decimal separator. If there is % sign
(after each field), express you answer as percentage (for example,
insert 1.27 instead of 0.0127).
a. Calculate the NPV of this investment opportunity using
the APV method.
b. Using your answer to part (a), calculate the NPV of this
investment opportunity using the WACC method.
c. Finally, show that flow-to-equity also correctly gives
the NPV of this investment opportunity.