A: The asset beta for food trucks is 0.7. XYZ Food Service has a debt to equity ratio of 0.3. The riskless rate is 3.6%, the expected return on the S&P 500 is 12.4%, and the tax rate is 20.3%. XYZ can borrow at 6.1%. What is the NPV of XYZ purchasing a taco truck if it has an initial cost of $277,818 and produces EBIT of $44,457 per year for the next 11 years, using the WACC method? Please give your answer to the nearest dollar.

B: Would owning equity in the taco truck project described above be more or less risky than owning an S&P500 index fund? Why?