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UltraMX Corp., an all equity exchange traded company,is planning to invest in a project as follows:Initial investment = $100 million.The project is financed with debt and equity in same proportion(i.e., one part of debt to one part of equity).Expected cash flows after tax = $10 million in perpetuity.Tax rate = 25%Cost of debt after tax of project (4%)Equity beta of project = 1.5UltraMX beta = 0.8Market risk premium (MRP) =6%.Risk-free rate = 3%.Based on above information, answer the following questions:Calculate the appropriate discount rate (cost of capital) forUltraMX project.Determine whether UltraMX should accept or reject theproject using NPV and IRR, respectively.Assume the current market value of the firm is $500 million andmarkets are efficient in the semi-strong form:1) what would happen to the value ofthe firm after announcing the project?2) what would be the percent change inthe share price of UltraMX after announcing theproject?3) what would be the fair value ofUltraMX after announcing the project?