Dean LL hired you as a consultant to help decide on an expansion project. The project that will produce $10 million of revenue per year for five years. Cash expenses will be $3 million, and depreciation expenses will be $1 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $1.5 million The firm's cost structure consists of 55% debt and 45% equity. The cost of equity is 10%. The firm's debt consists of bonds that have an 8% coupon (paid semi-annually) and have 20 years to maturity. The bonds are currently selling at $950 and have a face value of $1000. The firm's tax rate is 27% 1. What is the yearly free cash flow on the expansion project? Show all your work 2. What is the company's WACC? Show all your work. 3. If the project's initial investment is 20 million, should Dean expand? why? Explain using the appropriate equations. Show all your work 4. Suppose the firm decides to shift its capital structure to 60% equity and 40% debt. How will affect the expansion decision, if any? Why? Show all your work. Explain all your answers using the appropriate equations (not just calculator functions). Your explanation determines your grade