Comprehensive Mini Case 2 - Dupont Suppose DuPont is considering an investment that would extend the life of one of its chemical facilities for 4 years The project would require upfront costs of $6.67 million plus a $24 million investment in equipment The equipment will be obsolete in 4 years and will be depreciated via straight-line over that period During the next four years, however, DuPont expects annual sales of $60 million per year from this facility Material costs and operating expenses are expected to total $25 million and $9 million, respectively, per year DuPont expects no net working capital requirements for the project, and it pays a tax rate of 35% Dupont's 10-year, 7% annual coupon, $1,000 PAR bonds are currently trading for $1,275.54 Assume DuPont's class A preferred stock has a price of $66.67 and an annual dividend of $3.50 Assume the equity beta of DuPont is 1.37, the yield on ten-year Treasury notes is 3%, and you estimate the market risk premium to be 6%. The current market values of DuPont's common stock, preferred stock, and debt are $30,860 million, $187 million, and $9543 million, respectively Dupont's project and firm WACC are equal. Should Dupont accept this project? Repeat all the steps in the video. How much is the Dupont chemical plant's net present value (NPV) in millions? Enter your answer in the following format: + or - 1.23; Hint #1: Answer is between -2.19 and -2.99 Hint #2: Repeating all the steps will take 10 to 15 minutes. Since this is an important Business problem, it is worth this time. Note: Positive NPV projects must be pursued and negative NPV projects must be abandoned