5. You work for Campbell's Soup. Your boss has asked you to calculate the NPV of a new line of chewing gum which will have some of the firm's popular flavors (e.g. Chicken Noodle Gum). You estimate the annual revenues for this project will be $500,000, cost of goods sold will be $200,000, new equipment will cost $800,000 and will be depreciated completely over the projects life (four years, straight line). The project will also need $100,000 in working capital (immediately), which will be recouped in the final year. The building adjacent to your existing factory will be rented for this project at an annual cost of $50,000. You accumulated $5000 in overtime pay figuring all of this stuff out. The firm's current cost of capital is 10% and their DE - 2. A potentially relevant publicly traded chewing gum company's financial information is: Bstock 15 debt = 0.5 rf = 4% E("mkt)= 12% Tax Rate 50% DE = 2.0 What is this project's NPV