need help with the remaining questions

The Phillips Company is considering increasing its headphone production capacity to fulfill a large private contract. The CFO has tasked her finance staff to analyze the project and make a recommendation to the executive team to be included at next month's board meeting. The CFO provides the following information to the analyst: COST OF CAPITAL Phillips' current capital structure is comprised of $500,000,000 in debt, $400,000,000 in preferred equity, and $100,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 5% and a current market price of $1,112. Preferred shares of Phillips are trading at $24/ share and pay an annual dividend of \$1.02/share. Common stock of Phillips has a beta of 1.1 and trades at $34/ share. The 10 -year US treasury yield is 1.75%. The market risk premium is estimated at 8.65%. Their tax rate is 21%. PROJECT CASH FLOWS Philips expects to invest $30,000,000 in new/plant equipment. The contract will last for 10 years, at which point it expects its plant equipment to have a salvage value of $8,000,000. They plan to finance this project using 75% debt and 25% equity. Their investment banker advises there are transaction costs of 2.5% on debt and 10.5% on equity. Phillips expects to increase its accounts receivable by $9,000,000, its inventory by $1,000,000, and its accounts payable by $6,000,000. It expects to sell 42,000 units at a price of $310/ unit, with variable cost per unit of $195. It expects additional operating costs each year of $900,000. Phillips tax rate is 21%. - What is the annual depreciation for the fixed assets of this project? - What is the firm's weighted average flotation cost? (round to four decimal places) - What is the firm's flotation adjusted Initial Capital Expenditure? (round to nearest $100,000 ) - What is the projected Cash flow at Year 0 ? (round to nearest $100,000 ) - What is expected Cash flow Year 1-9? (round to nearest $100,000 ) - What is the expected Cash Flow of Year 10 ? (round to nearest $100,000 ) - What is the project's Net Present Value? What is Phillips Accounting Break-even unit sales level? What is Phillips Cash Break-even unit sales level? The Phillips Company is considering increasing its headphone production capacity to fulfill a large private contract. The CFO has tasked her finance staff to analyze the project and make a recommendation to the executive team to be included at next month's board meeting. The CFO provides the following information to the analyst: COST OF CAPITAL Phillips' current capital structure is comprised of $500,000,000 in debt, $400,000,000 in preferred equity, and $100,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 5% and a current market price of $1,112. Preferred shares of Phillips are trading at $24/ share and pay an annual dividend of \$1.02/share. Common stock of Phillips has a beta of 1.1 and trades at $34/ share. The 10 -year US treasury yield is 1.75%. The market risk premium is estimated at 8.65%. Their tax rate is 21%. PROJECT CASH FLOWS Philips expects to invest $30,000,000 in new/plant equipment. The contract will last for 10 years, at which point it expects its plant equipment to have a salvage value of $8,000,000. They plan to finance this project using 75% debt and 25% equity. Their investment banker advises there are transaction costs of 2.5% on debt and 10.5% on equity. Phillips expects to increase its accounts receivable by $9,000,000, its inventory by $1,000,000, and its accounts payable by $6,000,000. It expects to sell 42,000 units at a price of $310/ unit, with variable cost per unit of $195. It expects additional operating costs each year of $900,000. Phillips tax rate is 21%. - What is the annual depreciation for the fixed assets of this project? - What is the firm's weighted average flotation cost? (round to four decimal places) - What is the firm's flotation adjusted Initial Capital Expenditure? (round to nearest $100,000 ) - What is the projected Cash flow at Year 0 ? (round to nearest $100,000 ) - What is expected Cash flow Year 1-9? (round to nearest $100,000 ) - What is the expected Cash Flow of Year 10 ? (round to nearest $100,000 ) - What is the project's Net Present Value? What is Phillips Accounting Break-even unit sales level? What is Phillips Cash Break-even unit sales level