Q5) Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be $375,816.00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be $52,033.00. The old equipment currently has no market value. The new equipment cost $72,858.00. 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 $17,733.00. An increase in net working capital of $59,007.00 is also required for the life of the project. The corporation has a beta of 0.531, a tax rate of 35.29%, and a target capital structure consisting of 62.36% equity and 37.64% debt. Treasury securities have a yield of 3.59% and the expected return on the market is 12.00% . In addition, the company currently has outstanding bonds that have a yield to maturity of 6.36%