Consider a two-year project requiring an investment of - $1,000 at t = 0 and producing earnings before interest, taxes, depreciation, and amortization (EBITDA) of $700 and $800 in years t = 1 and t = 2, respectively. The investment at t = 0, which will be straight-line depreciated down to zero, will be financed with a combination of a loan (L) and equity. The cost of the loan is 10% p.a. and its principal payments in years t = 1 and t = 2 will be L/2. Of course, you would also have to make annual interest payments on the loan's balance outstanding. The tax rate is 30%. Calculate each year's free cash flows (FCF) corresponding to L = $0 and L = $500. Then, find the NPV for each of these two loan scenarios by using a discount rate of r_E = 6%, 7%, and 8% p.a. (IMPORTANT NOTE: you may do this exercise in Excel, but you must give me a printed version of each of the 6 tables that you used to calculate the NPVs. Also remember that for years 1 and 2 we have EBITDA - Depr - Interest = Earnings before taxes. Then EBT Taxes = Net Income. Then NI + Depr = Operational cash flow. Then OCF - Principal = Free cash flow, or FCF. This should help you construct the required table.