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A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 129,852.00 129,852.00 129,852.00 129,852.00 129,852.00 60.824.00

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A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 129,852.00 129,852.00 129,852.00 129,852.00 129,852.00 60.824.00 60.824.00 60.824.00 60.824.00 60.824.00 Cost of Goods S&A 30.000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 20,427.60 20,427.60 20,427.60 20,427.60 20,427.60 1,031.00 577.00 577.00 577.00 577.00 577.00 Investment in NWC 102,138.00 Investment in Gross PPE The firm has a capital structure of 36.00% debt and 64.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 12.00%. The tax rate facing the firm is 39.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) Submit

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