Dean LL hired you as a consultant to help decide on an expansion project. The project wil produce $10 million of revenue per year for five years. Cash expenses will be $2.5million, 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 $900,000. The firm's cost structure consists of 45% debt and 55% equity. The cost of equity is 10%. The furm's debt consists of bonds that have an 7% coupon (paid semi-annually) and have 20 years to maturity. The bonds are currently selling at $900 and have a face value of $1000. The firm's tax rate is 27%. 1. What is the yearly free cash fiow 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 calculations. 4. What is the MIRR of project A? axing MIRR, would you accept in? Why? Show all your work 5. Suppose that the firm receives new cash flow estimates which show that the revenues of the existing project B will decrease by $2 million instead of $900,000 if they take on project A. Show how this affects the firm's decision to accept project A. Show all your work. Show all your work. Explain all your answers using the approgriate equations inot iust cakculator functions) Your explanation determines your grade. 1. Yearly free cash flow is calculated as follows