Do not use excel, use formulas to compute the question Anheuser-Bush InBev sustains in the last years a fixed level of debt of D =$110B, which is regarded to be risk-free . Moreover, the market value...

Do not use excel, use formulas to compute the question

Anheuser-Bush InBev sustains in the last years a fixed level of debt of
D=$110B, which is regarded to be
risk-free.

Moreover, the market value of its shareholders’ equity is
E=$70B and the beta of its stock
β
_E=1.4. Suppose that the CAPM holds. The risk-free rate is 2% and the market risk premium is 5%.

The company plans to introduce a new ultra-light beer with zero calories, which will be called BudZero. The cost of bringing the beer to the market (at
t=0) is $200M.

BudZero is then expected to generate
constant
free cash flows equal to $100M, paid at the end of every year (starting at
t=1),
forever.

Suppose that the “BudZero” project will be financed
exclusively with equity.

What is the net present value of this project?