1. Mindful Mats Inc. is considering a new project that it considers to be a little riskier than its current operations. Thus, management has decided to add an additional 3% to their company's overall cost of capital when evaluating this project. The project has an initial cash outlay of $60,000 and projected cash inflows of $25,000 in year one, $32,000 in year two, and $17,000 in year three. The firm uses 40% debt and 60 % common stock as their capital structure. The company's cost of equity is 11 % while the after-tax cost of debt for the firm is 5 %. What is the projected net present value of the new project? 2. Calculate weights of debt and equity is debt to equity ratio is 0.7