Net Present Value (with Terminal value) please help.

Eleanor Designs is considering a new product line of 'green' soft furnishings. The Product requires purchase of a machine at $95000 with another $5000 for installation. These two costs make up the base for 5 year straight line depreciation with no salvage value. They need to train someone to work with the new line, and the supplier suggests that it will cost in the neighborhood of $13000. This cost is not capitalized. 590 Sales are expected to start at $50000, go up to $75000 in the second year, then increase by 4% for the next three years. At that time, management thinks there will be a 50% chance of the product continuing indefinitely, a 30% chance that it will fail completely, and a 20% chance that sales will increase at 4% for another 5 years before levelling off and continuing indefinitely. Management also believes that existing product lines will lose around $10,000 of sales per year for as long as the new line is available. Operational costs are expected to start at $30000 and increase by 3% a year after that until year five. After that, costs should stay at the same percentage of sales as in year five. Net working capital will increase by 5% of any new sales. 75,000 - 56000 = 25,000 , The company expects the cost of new debt to be 10%. Their tax rate is 30%. The risk free rate is currently 5% and the return on the market is 13%. The company has a beta of 1.8. The company has a target capital structure of 60% debt and 40% equity. 1. (50 points) Complete the base case cash flow projections for 5 years on the attached form. Label specific line items clearly and identify any assumptions you are making. 2. (10 points) Calculate the WACC for the firm. 3. (10 points) Determine an appropriate terminal value for the project. Explain your assumptions. 4. (10 points) Determine the base case net present value. Would you recommend that the company take on this product line? Be complete in your explanation of your response. 5. (20 points) What risk analysis would you perform before coming to a final decision about this investment? Include a discussion of specific techniques that you would employ. Also discuss specific components of your analysis that are particularly risky or ones that are critical to the outcome of the analysis. How confident are you in your recommendation regarding this project. Net Investment Capitalized Costs Time Zero Expenses Tax Effects Total Net Investment Straight Line Depreciation Base Years Annual Payment Sale of old assets Selling price Book Value Gain Loss Tax Effect Terminal Value Terminal value Present Value of TV Year 2 Free Cash Flows Revenues - Operating Costs - Other Incremental Costs - Depreciation = EBIT - Taxes - EBIAT + Depreciation +/- Working Capital Free Cash Flows Discount Free Cash Flows with WACC Sum of Present Values of Free Cash Flows - Net Investment Net Present Value