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DIY invests in a 5-year project. The cost of the equipment is $112,249 and depreciates straight line to $0 salvage value. The annual EBIT is

DIY invests in a 5-year project. The cost of the equipment is $112,249 and depreciates straight line to $0 salvage value. The annual EBIT is $46,913. DIY finances the project with a 5-year loan of $39,782 that charges 6.3% interest. The cost of unlevered and levered equity are 8.5% and 10.1% respectively and the target debt/equity ratio is 0.25. The tax rate is 27%. Calculate the NPV of the project using the WACC method.

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