An investment projects lifetime is estimated as 6 years and requires 30 million TL as investment cost. Salvage value of the project is estimated as 8 million TL (which will be received in the 7th year) However firm prefers to show salvage value only as 3 million TL. Firm uses 6-year straight line depreciation.

It is estimated that the sales will be 14 million TL next year and then sales will grow by 15% each year.

It is estimated that fixed costs will be 3 million next year and then will grow by 10% each year.

Variable costs are projected %25 of sales each year.

This project, in addition, requires a working capital of 3 million TL in the first year, 4 million in the second year, 5 million in third year, 6 million in the fourth year and 4 million in the fifth year and 3 million in the sixth year.

Firm plans to use a debt/equity ratio of %60 in this project. Corporate tax rate is %20.

Estimate a logical WACC in TL for this company. You should give logical numbers while estimating cost of debt and cost of equity considering current risk-free rates and market risk premiums in Turkey. This company has higher systematic risk compared to market.

Show step by step how you calculate cost of debt and cost of equity. Give logical numbers and write the reasons.

Calculate NPV and MIRR of this project? If this a feasible project?