Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12.2% to evaluate this project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars) 1-9 10 Year Revenues Manufacturing Expenses (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 35% Unlevered Net Incom Depreciation Additions to Net Working Capital 98.6 -37.8 -9.5 15.1 36.2 -12.7 23.5 +15.1 4.4 98.6 -37.8 - 15.1 36.2 12.7 23.5 +15.1 -4.4