A 3-year project will cost $60,000 to construct. This will be depreciated straight-line to zero over the 3-year sales7,000 units per year, price per unit-$25 and variable cost per unit-$14, Fixed costs rate -30% and the debt-to-equity ratio is 1. The firm has outstanding 8% annual coupon bonds with 9 years until maturity selling at 109:0. The firm just paid a $2.00 dividend on its common stock, the dividend growth rate is 5% and the stock currently sells for $28 per share. $30,000 per year. The tax 45. What is the operating cash flow in year 2? a $18900 b. $27100 c. $34000 d. $38900 c. None of the above. Correct answer 2601 Four 10 0847 18 17 18 b. 46. What is the IRR of the project? a The IRR is not defined -2.8% C. 16.6% d. 42.4% c. None of the above. Correct answer 7. What is the required rate of return on the firm's common stock? a 6.64% b. 9.27% 10.00%