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Please fill out all of the numbers. Not the entire table. PepsiCo has developed a new beverage vending machine for use by third-party fast-food restaurants

Please fill out all of the numbers. Not the entire table. image text in transcribed

PepsiCo has developed a new beverage vending machine for use by third-party fast-food restaurants throughout the world. It can go into production for an initial investment in robotic equipment at a dedicated plant of $600,000,000. The equipment will be depreciated according to 5 -year MACRS over 6 years to a value of zero, but in fact it can be sold after 6 years for $62,000,000. The firm allocates $25,000,000 working capital to the project, to be recovered at the end. The firm estimates production costs equal to $16,000 per vending machine and believes that the machines can be sold for $40,000 each. Sales forecasts are given in the following table. The project will end in 6 years, when the vending machine sales are likely to wane due to competition and obsolescence. The firm's tax bracket is 30%. In the capital structure, PepsiCo has 20% of senior debt yielding 6%,20% of junior debt yielding 10% and 60% of equity. The risk-free rate is 4%, the market risk premium is 8%, and the company's beta is 1.4. What is the company's WACC? Be accurate to 4 decimals. What is the project' NPV? Use the following table to help you solve the case. Enter the amounts marked in the table by square brackets into Canvas. Enter WACC in \%, i.e. 12.1234% as 12.1234, the rest in dollars, accurate to one cent. (Note the WACC question [1] is toward the bottom of the table) Fill in the Table in \$

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