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19. Presume that the project I am analyzing provides cash flows that can best be characterized as a perpetuity that will deliver free cash flows to equity of $3 million next year, and will grow at 2.5% thereafter. The project is financed with $45 million in non-recourse debt alongside an equity investment of $30 million. Assume that the average industry asset beta (i.e., the unlevered beta) is 0.85. Recall that the process of valuing projects that are financed using non-recourse debt (project finance, rather than corporate finance) involves unlevering the beta with an assumed D/E ratio based on book values, using that to get a cost of equity and thus a value for the project's equity, and then running through the process multiple times as our estimate of both equity and D/E improve. After three such iterations, which of these numbers is closest to your estimated value of equity in this project? Select the closest answer. a. $25 million b. $36 million C. $43 million d. $52 million e. This problem cannot be solved with the information provided. 19. Presume that the project I am analyzing provides cash flows that can best be characterized as a perpetuity that will deliver free cash flows to equity of $3 million next year, and will grow at 2.5% thereafter. The project is financed with $45 million in non-recourse debt alongside an equity investment of $30 million. Assume that the average industry asset beta (i.e., the unlevered beta) is 0.85. Recall that the process of valuing projects that are financed using non-recourse debt (project finance, rather than corporate finance) involves unlevering the beta with an assumed D/E ratio based on book values, using that to get a cost of equity and thus a value for the project's equity, and then running through the process multiple times as our estimate of both equity and D/E improve. After three such iterations, which of these numbers is closest to your estimated value of equity in this project? Select the closest answer. a. $25 million b. $36 million C. $43 million d. $52 million e. This problem cannot be solved with the information provided

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