5. Majestic Theaters is considering investing in some new projection equipment whose data are shown below. The required equipment has a 7-year project life falling into a CCA class of 30%, but it would have a positive salvage value at the end of Year 7. Also, some new working capital (NOWC) would be required, but it would be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant at the end of each year for the project's 7 -year life. Find the project's NPV. (Hint: There will be four basic components to consider). (12 points) 12.0% $950,000 $30,000 WACC Net capital investment in fixed assets Required new working capital (NOWC) at beginning of project Sales revenues, each year Cash operating costs, each year Expected salvage value Tax rate $580,000 $330,000 $50,000 35.0% 5. Majestic Theaters is considering investing in some new projection equipment whose data are shown below. The required equipment has a 7-year project life falling into a CCA class of 30%, but it would have a positive salvage value at the end of Year 7. Also, some new working capital (NOWC) would be required, but it would be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant at the end of each year for the project's 7 -year life. Find the project's NPV. (Hint: There will be four basic components to consider). (12 points) 12.0% $950,000 $30,000 WACC Net capital investment in fixed assets Required new working capital (NOWC) at beginning of project Sales revenues, each year Cash operating costs, each year Expected salvage value Tax rate $580,000 $330,000 $50,000 35.0%