Karga Transportation operates in the landspeeder and interstellar transports markets. Karga will generate cash flows for 10 years before shutting down.Karga will generate free cash flows of $40 million per year for ten years in the landspeeder division and $50 million per year for 10 years for the interstellar transports division,The Beta for the landspeeder division is 0.8 and the beta for the interstellar transports division is 2.2. The risk free rate is 3% and the market risk premium is 7.5%. Karga is 100% financed by equity.  What is the value of the landspeeder division? What is the value of the Interstellar transports division?  What is the expected return on Karga equity in percent?

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