French Inc. hired you as a consultant to help decide on an expansion project. The project will produce $1 million of revenue per year for nine years. Cash expenses will be $5 million, and depreciation expenses will be $1 million per year. The project will increase networking capital by $65,000 and fixed assets by $150,000 each year. The firm has a market value of outstanding debt of $10,850,000 and $25,400,000 in the equity. The before tax cost of debt is 8%, and the tax rate is 27%. The cost of equity is 10%. 1. what is the yearly free cash flow on the project? 2. what is the firms WACC? 3. should the firm accept this project if it requires an initial investment of $50 million? Why or why not? Explain using the appropriate equations. Show all work. 4. suppose a perms cost of equity decreases to 8%. Will this affect the expansion decision? Why or why not? Explain using the appropriate equations. Show all your calculations. 5. What is the IRR of this project? Based on this would you accept the project? Do the NPV and IRR agree but for this project? Show all your calculations. Explain.