3. a) What is the appropriate amount to use as the initial cash flow CFO? b)What is the appropriate amount to use as the annual operating cash flows from the project OCF? c) Determine the after tax salvage value of the project (The cash Flow at the end of the project that comes from the sale of the project assets)? 4. Use the following information for questions in problem 4: The capital structure of Truman industries Inc. consists of bonds in common stock equity. TIs tax rate is 40%. The details on the various components of its capital structure are as follows: Bond: Type: Fixed Semi - annual coupon, non callable Maturity: 20 years Coupon Rate: 7% Par Value: 1000 Current Price: $850 Common Stock: Current Price: $18 Last annual dividend just paid : $2 Expected Growth Rate of dividends: 6% Beta: 1.4 Risk free rate: 3.5% Expected Return of the market: 11.50% Questions: a) What is the after -tax cost of debt of bond 1 b) Using the CAPM what is the after tax cost of Equity of the common stock of TI ? c) Truman Capital Structure consists of 60% in bonds with remainder in common stock equity financing. Using cost if debt and equity and 2 parts above find TIs WACC?