A firm has the following capital components and costs. Component Value Debt 15,742 Preferred Stock 8,482 Common Equity 11,895 After-Tax Cost 9% 8 % 14% What is the firm's weighted average cost of capital? _% (to two decimal places) QUESTION 8 A firm is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV no decimal places) (Hint: Cash flows from operations are constant in Years 1 to 3.) WACC Net investment in fixed assets (depreciable basis) Required net operating working capital at two Straight-line depreciation rate Annual sales revenues Annual operating costs (excl. depreciation) Tax rate 10% $75,000 $15,000 33.333% $75,000 $25,000 21.0%