You’re starting an athletic clothing chain and have chosen Eastern Mountain Sports as your comparable. EMS has an project/asset beta of 1.40 and an equity beta of 1.80. EMS also has $80M in equity and $40M in debt. The expected return of the market is 7% and the risk-free rate is 2%. What is the appropriate discount rate to use for your division’s assets/projects? You are valuing a project for the clothing chain described in the previous problem. The project has expected revenues of $200k per year, for the next 5 years. The project has fixed costs of $50k per year. The project will require an initial investment of $300k. Your firm has $20M in equity and $5M in debt, which is risk-free. The tax rate is 0%. What is the NPV of the project? Please list the equations used to find the solution.