1 What is the initial outlay?(Show the working as to what items are included) 2 Calculate Cost of Equity using CAPM: 3 Calculate WACC 4 Fill in the below income statement Revenue COGS Gross Profit SG\\&A/Other costs Depreciation EBIT Interest EBT Tax Net Profit 2023 150,000 2025 150,000 150,000 \\begin{tabular}{l} \\hline Calculate Operating Cash Flow for the 5 years \\\\ \\hline EBIT (1-Tax) \\\\ Add: Depreciation \\\\ \\hline FCF \\\\ \\hline 6 What is the Terminal Value (Show the working) \\\\ \\hline \\end{tabular} Question MBA Corp plans to use its idle building that can potentially be rented for \\( \\$ 15,000 \\) per annum to set up a manufacturing machinery there. The current Revenue of WP Corp is \\( \\$ 500,000 \\). If the company takes up this project, its revenue is expected to increase by \30 for the next 3 years and then double (frc After 5 years, the project will be scrapped and the salvage value is expected to be \\( \\$ 80,000 \\) The COGS are expected to remain the same at \60 of revenue. The SG\\&A and other operating costs will increase by \\( \\$ 10,000 \\). The cost of the machinery is expected to be \\( \\$ 250,000 \\). The machinery installation cost is expected to be \\( \\$ 20,000 \\). This investment will require additional inventory of \\( \\$ \\) The company spent \\( \\$ 5000 \\) in researching the viability of the building for machine installation. The company hires you as a financial manager to advise if they should take up this project or not. Other information: Full \100 depreciation is taken for the CAPEX in the year in which it is done Tax rate = \25 For calculating WACC, please use the below information: Cost of new Debt: Cost of Preferred Shares: Cost of Equity: Target Capital Structure: \8 \6 Need to calculate Beta \=1.2mathrmRf=mathbf2 RM-Rf \=6 Debt : Preferred Sh : Equity \\( 3: 1: 6 \\) (Hint: \\#1: Only incremental cashflows are considered when we evaluate a project. \\#2: Note that the cash outflow occurs at the beginning of the year 2023 while all the