QUESTIONS: a. Determine the WACC for the company. Compute the NPV of the new project based on the free cash flows you calculated using the WACC method. [40 marks]
b. Determine the NPV using the APV and FTE methods. In both cases, assume the company maintains the target leverage ratio you computed in WACC. [40 marks]
c. Compare the results under the three methods and explain how the resulting NPVs are achieved under each of the three different methods.