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A firm has projected the following financials for a possible project: 3 5 2 YEAR 0 1 134,994.00 134,994.00 134,994.00 134,994.00 Sales 134,994.00 62,673.00 62,673.00

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A firm has projected the following financials for a possible project: 3 5 2 YEAR 0 1 134,994.00 134,994.00 134,994.00 134,994.00 Sales 134,994.00 62,673.00 62,673.00 62,673.00 62,673.00 Cost of Goods 62,673.00 30,000.00 30,000.00 30,000.00 30,000.00 S&A 30,000.00 21,318.60 21,318.60 21,318.60 21,318.60 21,318.60 Depreciation 558.00 558.00 558.00 558.00 558.00 1,044.00 Investment in NWC Investment in Gross PPE 106,593.00 The firm has a capital structure of 36.00% debt and 64.00% equity. The cost of debt is 10.00%, 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. ie only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC herel) Sum Answer format: Currency: Round to: 2 decimal places

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