Dafodil Technologies Inc. is considering launching a new technical product that the company's information technology division has suggested. Before moving forward with the plan, the organization must assess the project's financial viability. Assume you've been hired as the project's Financial Manager, and you'll be supporting the corporation's Chief Financial Officer (CFO). Your CFO has sent you the following details, which he believes will be useful in completing your tasks:
Since the company plans to launch completely new products after three years, this new version will have a three-year life. This project is estimated to cost BDT 9,710,000 and achieve an annual operating profit of $4,750,000. According to market research conducted this year at a cost of $60,000, if any working capital is spent in a new project, 50 percent of the working capital could be recoverable at the project's conclusion. This project would also generate $200,000 in annual depreciation. Assume that the company's tax rate is 35%. In addition, beginning in its first year of service (Year 1), this project will generate the following account balances in each of the next three years:

	Current balance without the project	Balance with the project
Cash	$55,000	$89,000
Inventory	100,000	180,000
Accounts Payable	70,000	120,000

As a financial analyst for this company, you are well aware that you will need a discount rate to assess this project, and you have determined that the firm's marginal Weighted Average Cost of Capital (WACC) is the acceptable discount rate for this project based on the principles you studied in FINANCE class. However, the WACC has yet to be determined. You have heard that Dafodil Technologies would issue 8,000 bonds with a 6.5 percent coupon, a BDT 1000 par value, and a 5-year maturity period to fund this project. These bonds would sell for 92 percent of their face value, with semiannual coupon payments. The bond's issue and sale costs are estimated to be BDT 20 per bond. The corporation would incur a BDT 5,20,000 annual interest cost as a result of the bond issuance. Furthermore, the company will sell 15,000 shares of 10 percent (annual dividend) preferred stock (BDT 70 Par Value) at a price of BDT 90 per share (with premium). The preferred stock is estimated to cost BDT 2.5 per share to issue and sell. The company's internal equity would cover the remaining portion of the necessary sum. The company currently has a total of twelve thousand (12,000) outstanding common shares, which are currently trading at BDT 52 per share on the stock exchange. Last year, the company paid a BDT 3.00 dividend, and it expects dividends to rise at a constant rate of 10% per year in the future. For the company, the expense of issuing and selling each common stock is usually BDT 2.00 per share.
Since the company's CFO is already overburdened with jobs, he has requested your assistance with the following vital estimates, based on your expertise in corporate finance.
Requirements:
1. Determine the market value-based capital structure for the project.
2. Calculate the Free Cash Flows for the project (FCFs).
3. Calculate the WACC that applies to the project, as well as its interpretation.