Company $A$ is considering a $4-$year project. They own a piece of land that could be sold for $$100,000.$ They hired an engineer to evaluate it and she has approved it for building a new factory. The engineer billed the company for $$15,000.$ Bulilding a new factory will cost $$776000$ and the new product is estimated to result in $$439000$ in annual sales. It will reduce the sales of the existing product by $$50,000,$ and it will have an annual cost of $$100,000$ The project will be depreciated straight line to $$200,000$ over $5$ years, and it will have a salvage value at the end of the project of $$138000.$ For this project the company will issue a bond and it will cost the company $$60,000$ year in interest. The factory also requires an initial investment in spare parts inventory of $$71000,$ along with an additional $$11100$ in inventory for each succeeding year of the project. The company's tax rate is $0\mathrm{.}35.$

This company also has $$620,000$ shares of common stock outstanding. The current share price is $$75\mathrm{.}39,$ and the book value per share is $$6\mathrm{.}95.$ This company also has two bond issues outstanding. The first bond issue has a face value of $$67000000,$ has a $0\mathrm{.}05$ coupon, matures in $10$ years and sells for $83$ percent of par. The second issue has a face value of $$64000000,$ has a $0\mathrm{.}06$ coupon, matures in $20$ years, and sells for $92$ percent of par..

The most recent dividend was $$2\mathrm{.}60$ and the dividend growth rate is $0\mathrm{.}07.$ Both bonds make semiannual payments.

The risk$-$free rate is $3\%$ and his company has a beta of $1\mathrm{.}2.$ the return of market is $10\%.$ this project is considered to be Risker than the company's Existing operations in the company evaluates riskier projects by adding a $2\%$ premium to its WACC. calculate the NPV and the IRR of this project. should the company take this project? Please fill this out on an excel spreadsheet and show all work. Answer $1.$ what is the investment amount for this project? $2.$ cost of equity dividend $($growth model$)$ and cost of equity $($CAPM$)3.$ pro$-$forma Statements so year $1-4,$ sales, cost, depreciation, EBIT, interest, Taxable income, taxes and net income for all $4$ years. then answer these: Accumulated depreciation at the end of year four, book value of the project in year four $,$salvage value net of tax $4.$weighted average cost of capital $($WACC of the stock and two bonds. $5.$ create a project cash flows.