Q5) Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be $112,977.00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be $61,652.00. The old equipment currently has no market value. The new equipment cost $74,102.00. The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of the project. At the end of the project the equipment is expected to have a salvage value of $14,806.00. An increase in net working capital of $57,737.00 is also required for the life of the project. The corporation has a beta of 0.729, a tax rate of 34.06%, and a target capital structure consisting of 69.81% equity and 30.19% debt. Treasury securities have a yield of 2.62% and the expected return on the market is 12.97%. In addition, the company currently has outstanding bonds that have a yield to maturity of 8.89%. a) What is the total initial cash outflow? (show as negative number 2.5 Points) - -$131,839.00 b) What are the estimated annual operating cash flows? (2.5 $5,008.24 points) c) What is the terminal cash flow? (2.5 points) $67,500.08 d) What is the corporations cost of equity? (2.5 points) e) What is the WACC? (2.5 points) $0.10 8.87% f) What is the NPV for this project? (2.5 points) -$66,822.85