(1 Consider the following project: Q1426. Project Real Physical Lifespan Cost Gross Output 6 years $150 $50 in year 1 $80 in year 2 $90 in year 3 $50 in year 4 $25 in year 5 $0 in year 6 $5/year $5/year Overall Cost of Capital 12%/year Corporate Tax Rate ()40%/year - Input Costs (cash) Selling Costs (cash) Available Financing Debt Capacity Debt Interest Rate $50 10%/year Accounting Treatment Accounting Life Depreciation Method 3 years Linear Assume customers pay one year after delivery. Construct (the relevant items of) the balance sheet, the income state- ment, and the cash-flow statement. Compute the value of this firm, both from finance principles and from the finan- cial statements. (Please note that this is a time-intensive question--almost a mini-case.) 0 14 7 n