17. A firm is considering a project that requires investment in assets that are depreciated according to a 3-year MACRS depreciation schedule (0.3333, 0.4445, 0.1481, 0.0741) with no salvage value expected at the end of the estimated four-year project life. The original purchase price of the equipment, including shipping and installation is $100,000. The equipment will require an investment of 20% of the next years' sales for net operating working capital and the firm has a 35% corporate tax rate. First year sales are expected to be $80,000 and cost of goods sold are expected to be $45,000 and both will remain constant for all four years. Year 0 Year 1 Year 2 Year 3 Year 4 Free Cash Flow a. Should the firm invest in this project, if the weighted average cost of capital is 10%? (15) b. What is the maximum WACC that would permit investment in the project? (4)