BB Inc is evaluating a project and needs your help. Suppose that BB expects the project's cash flow from operations to be $$80,000$ for $6$ years. The project will also require additional capital expenditures of $$28,000$ every year. You were also told that the firm last paid a $$1\mathrm{.}2$ dividend $($D$0=$ $$1\mathrm{.}2).$ The dividend is expected to grow at a constant rate of $6$ percent a year, and the common stock currently sells for $$40$ a share. The after$-$tax cost of debt is $7\mathrm{.}5$ percent, and the tax rate is $25$ percent. BBs target capital structure consists of $60$ percent debt and $40$ percent common equity.

What is the yearly free cash flow on the project? Show all your work.

What is the company's WACC? Show all your work.

If the project's initial investment is estimated at $$140,000,$ should BB expand? why? Explain using the appropriate equations. Show all your work.

What is the profitability index for this project? Show all your work.

Suppose that due to some good economic news, BB$$s stock price increases to $$45$ per share. Would this affect their expansion decision? Why or why not? Show all your work.

Show all your work. Explain all your answers using the appropriate equations $($not just calculator functions$).$ Your explanation determines your grade!