A. Calculate the WACC for the firm. (Enter percentages as decimals and round to 4 decimals)

B. Calculate the operating cash flows for the first year of the project.

C. Calculate the net present value for the project. (Round to 2 decimals)

The Rare Find Co. has the following information: Debt outstanding: $280 million Before-tax cost of debt: 5% Market cap: $650 million Cost of common stock: 11% Tax rate: 21% Rare Find is evaluating a project with the following information: Over the next five years EBIT will equal: 12 million, 13 million, 14 million, 15 million, 16 million respectively. An investment of $5 million is required in net working capital at the beginning of the project, which will be recovered at the end of the project. The cost of the equipment will be $30 million depreciated using straight-line to zero over the project's life, with no salvage value. The project requires an additional 1% risk premium above the firms WACC