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A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 123,422.00 123,422.00 123,422.00 123,422.00 123,422.00 Cost

A firm has projected the following financials for a possible project:

YEAR 0 1 2 3 4 5
Sales 123,422.00 123,422.00 123,422.00 123,422.00 123,422.00
Cost of Goods 69,079.00 69,079.00 69,079.00 69,079.00 69,079.00
S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Depreciation 22,072.20 22,072.20 22,072.20 22,072.20 22,072.20
Investment in NWC 1,152.00 540.00 540.00 540.00 540.00 540.00
Investment in Gross PPE 110,361.00

The firm has a capital structure of 48.00% debt and 52.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 13.00%. The tax rate facing the firm is 37.00%. (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 cash flow for year 1?

What is the NPV of the project? (Hint: Be careful about rounding the WACC here!)

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