5. Your firm is considering a new market project. The project will require an equipment purchase of $950,000. The equipment also requires a delivery fee of $148,000. The project will generate revenue in the amount of $800,000 each year for five years. Annual costs will be 10% of revenue. At the end of five years, the equipment can be sold for $275,000. The firm is in the 30% tax bracket. The equipment will be depreciated using a six-year life and straightline method. The firm has a 9% weighted average cost of capital. a. What is the project's initial cash outflow? b. What is the after-tax salvage value on the equipment sale? c. What is the project's internal rate of return? Should you accept or reject the project? Why? 6. Your firm is issuing new equity for a project's funding. The common stock will be priced at $165 per share, and it will pay a $0.95 dividend per share. Dividends are expected to grow by 15% indefinitely. Goldman Sachs will charge the firm an 20% flotation fee to prepare the stock issuance. The firm plans to issue five million shares of stock. a. How much will the firm make per share on the stock issuance? b. How much will Goldman Sachs make in total off the stock issuance? c. What is the cost of issuing new equity