I just need a calculate the company's WACC
Newport Manufacturing is considering the expansion of its production line. This line would be set up in the company's current manufacturing facility. The price of the equipment would be approximately $400,000. There would be a $20,000 shipping charge. It would cost $60,000 to install the equipment. The proposed equipment is expected to have an economical life of 4 years. If purchased, it would be depreciated using the 5 year MACRS. The salvage value is expected to be $50,000. The new equipment would increase sales by 2, 500 units per year for four years. The per-unit cost would be $120 excluding depreciation. During the first year, the items can be sold for $180. After that, the price and the cost are expected to increase 4% per year due to inflation. Additional working capital would be needed for the project in an amount equal to 12% of sales. The company's tax rate is 35%. The price of the company's stock is $30. It just paid a dividend of $2.10. Dividends are expected to grow 7% each year. Flotation costs for common stock are 10%. Newport's beta is 1.23, the market risk premium is 6% and the risk free rate is 6.5% Preferred stock has a price of $25 a pays a $3.30 dividend. The company issued bonds with a 20 year maturity They sell at par ($1,000) and pay a 10% semiannual coupon. The company will use internal resources to finance the project Also, they have a target capitals structure that consists of 60% common stock, 10% preferred stock, and 30% debt Should the company accept this project ? Use an excel spreadsheet to: Calculate the company's WACC. Construct annual incremental operating cash flow statement. Estimate the required net working capital for each year and the cash flow due to investments in net working capital. Calculate the after tax salvage cash flows. Calculate the net cash flows for each year. What are the project's NPV, IRR, MIRR, and PI? Make a decision about the project