For the questions 9, 10, 11, 12, and 13, use following information. For a new project, following information was projected. 10000 products can be sold with a price of 2.5 Cost per product is 1 Project has a 3-year life Fixed cost is 700 per year New equipment costs 18000 and depreciates completely in 3 years Initial investment of 5000 in net working capital Tax rate is 20% 9) What is the value of sales? A) 20000 B) 30000 C) 15000 D25000 E) None 10) What is the EBIT? A) 8300 B 800 C) 11800 D) 2800 E) None 11) What is the net income? A) 2240 B) 6640 C) 3840 9440 E) None 12) What is the project operating cash flow? A16940 B) 6240 C) 12640 D) 10840 E) None 13) What is third year cash flow? A) 17640 B) 11240 C) 21940 D) 15840 E) None For the questions 14 and 15 use following information: The Gau Co. has 1.3 million shares of stock outstanding. The stock currently sells for $15 per share. The firm's debt is 3.1 m and costs 9 percent. The risk-free rate is 8 percent, and the market risk premium is 8 percent. It is estimated that Gau has a beta of 0.75 and tax rate is 20%. 14) What is cost of equity? A) 12.50% (B) 1.75% 15) What is WACC? A) 10.90% B) 11.63% C) 13.25% D) 14.00% E) None C) 13.07% D) 12.65 E) None