30. Blackwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data below. If the cost of capital is 8.0%, what is the net present value (NPV) of this project? Year 0 Year 1 Year 2 Year 3 Revenues 700,000 700,000 700,000 Cost of Goods Sold -320,000 -320,000 -320,000 Gross Profit 380,000 380,000 380,000 Selling General and Admin -105,000 -105,000 -105,000 Depreciation -190,000 -190,000 -190,000 EBIT 8500 85,000 8500 Income tax (35%) -29.750 --29,750 -29,750 Incremental Earnings 55250 55,250 55.250 -600,000 Capital Purchases Changes to NWC -12000 -12,000 -12000 a. -$56,662 b. -$59,810 c. $62,958 d. $69,254 31. You are the manager of the petroleum refining division of a large international conglomerate. You are considering investing in building your own oil rig so that you don't have to negotiate with suppliers for inputs for your refineries. Your company's WACC is 10%. You are also aware of an all-equity company that exclusively operates oil rigs. The oil rig company's equity beta is 1.2, the retum on Treasury Bills is 4%, and the market risk premium is 6%. Estimate your project's cost of capital. a. 10.8% b. 10.0% c. 11.2% d. 12.1%