Frypan Inc. forecasts sales of $550,000 per year in the foreseeable future for a manufacturing project. Costs for this project are expected to be $420,000 per year. The initial investment is estimated to be $500,000. The firm has a corporate tax rate of 35%. The cost of unlevered equity for the firm is 13%. The cost of (perpetual) debt for Frypan Inc. is currently 10%. The target capital structure for Frypan Inc. is 30% (perpetual) debt and 70% common equity.

1. The NPV of the project is $226,257. Use the FTE approach and show the detailed calculation of how to arrive at this NPV

2. Use the WACC approach and show the detailed calculation of how to arrive at this NPV