Miller Manufacturing is evaluating an expansion project and needs your help. Suppose that Miller expects the project's cash flow from operations to be $$70,000$ for $5$ years. The project will also increase net working capital by $$10,000$ every year. You were also told that the firm is expected to pay a $$1\mathrm{.}4$ dividend at year end $($D$1=$ $$1\mathrm{.}4).$ The dividend is expected to grow at a constant rate of $7$ percent a year, and the common stock currently sells for $$42$ a share. The before$-$tax cost of debt is $7\mathrm{.}5$ percent, and the tax rate is $27$ percent. Miller's target capital structure consists of $60$ percent debt and $40$ percent common equity.

What is the yearly free cash flow on the expansion project? Show all your work.

What is the company's WACC? Show all your work.

If the project's initial investment is $$120,000,$ should Miller expand? why? Explain using the appropriate equations. Show all your work.

What is the profitability index for this project? Show all your work.

Suppose that the company's stock price rises to $$46?$ Would this affect their expansion decision? Why or why not? Show all your work.

Show all your work. Explain all your answers using the appropriate equations $($not just calculator functions$).$ Your explanation determines your grade!