Capital Budgeting - Case Study You are the CFO for a company considering expanding into a new product. To be conservative, you have forecasted sales of the product to last 4 years. The product will require an upfront investment of $10 million, which you will depreciate straight-line to zero over the life of the project. Fixed costs will be $1 million. You will sell the product for $5 per unit, and expect to sell 1 million units per year. Variable costs will be $2 per unit. You will require NWC of $500,000. Taxes are 30% and the CCA rate for your fixed assets is 15%. You have found a firm selling a similar product. It pays a dividend of $0.50 per quarter, and its stock price is currently $15. Their bonds have the same rating as yours. They pay a coupon of $50, mature in 10 years, and are currently priced at $900. Their preferred shares pay a $1.00 annual dividend and are priced at $12. You plan on raising $5 million through equity, $5 million through debt, and the remaind through preferred shares. Should you go ahead with this project? Support your answer with the relevant figures and show your work