1. Corporation Y has a face debt value of $60 Million USDs trading at 78% with a pre-tax weighted cost of 6%. Corporation Y common equity for the year was valued at $30 Million of USDs and preferred equity for $15 Million of USDs. The Preferred equity rate was calculated to be 17%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 11% market risk premium rate, assuming a 1.15 Beta. If the tax rate is 35%, What is this firm s WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

2. Suppose Corporation Z is considering investing in a new project of urban development. The cost of the project is $10000000 USD. Corporation Z expects that the non-incremental yearly cash flows from the project are $2500000 of USD for the next five years; e.g. that is $2500000 USD each year. Using the calculated WACC in the previous question, what is the Net Present Value (NPV) of the project? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."