(e) Determine the operating cash flows of the project by filling in the following table (Unit: $ ) according to the context. Question 4 (f) Compute the cash flow from assets for the project. Covidam Company clinches a contract to supply cleaning services to a nursing home for the next 5 years. Under the contract, the Company will be paid $1 million a year. To take up this contract, it would have to invest in new cleaning equipment costing $600,000 which will be depreciated straight line to zero over 5 years. There is no salvage value at the end of 5 years. Labour cost will be $300,000 per year and oventeads $250,00 per year. The Company will need to invest in nct working capital of $350,000. (h) Describe two (2) other measures besides NPV that give the same acceptreject It plans to issue $1 million worth of bonds for 5 years at a coupon rate of 6% and will decision as NPV. You need to show how these two (2) measures are related to price the bonds at par. The Company has an existing bank loan of $9 million. The cost NPV. (Note: No calculation is necded.) of debt from the bank loan is the same as the bonds. The common stock of the Company is selling for $10 per share and it has 2 million shares END OF PAPER outstanding. Expected dividend next year is $1 per share and dividends are expected to grow at 2% per annum into the foreseeable fiuture. The tax rate is 20%. (a) Compute the cost of equity of the Company. (5 marks) (b) Without any calculation, determine the cost of debt of the Company. (2 marks) (c) Calculate the weighted average cost of capital of the Company. (8 marks) (d) Calculate the initial cash flow of the project