2010 1 points irdebt - 10% OCFO = -5100,000 Ku rassets - 15% OCF1-4 = 539,800 - 25.000 (55 - 53)*1-034) 520,00034 K = requity - 24.9% OCF5 = $43.100 = $39.000 + $5,000 (1-034) KWACC = 11.20% Tax rate 34% Debt-to-equity ratio) Risk free rate 2% The 5-year project requires equipment that costa 5100.000. undertaken the shareholders will contbute $25,000 cash and borow $75,000 with an interiot only can with a maturity of 5 years and annual interest payments. The equipment will be depreciated straight line to zero over the year of the project There will be preta salvage value of $5,000 There are no other start-up costs at year Duning years through 5; the tem will set 25.000 unts of product 55 vonal costats there are no fixed costs When using the APV methodology what is the NPV or the depreciation taxa $32.051.52 O 525.777.35 $22.794.65 397.152.98