Refer to your cash flow estimation spreadsheet for this question. What is the WACC for Project A? Round your answer to 2 decimal places.

10.80%

9.44%

11.19%

10.35%

Cash Flow Estimation and Analysis for Expansion Project A 2 4 Investment Outlays at Time = 0 CAPEX Building and Equipment ANOWC = Additional net operating working -$212,000 capital needed 3,500 Operating Cash Flows Over the Project's Life (Time - 1-4) Unit sales Sales price Variable cost per unit Sales revenues Units Price Variable costs -Units Cost/unit Fixed operating costs except depr'n 4,700 $65.00$65.00$65.00 $65.00 $1.018 $1.078$1.046 $1.046 $162,500 $204,750 $253,500 $305,500 73,12592,138 114,075137,475 35,00035,000 14,840 $178,085 $222,538 $180,875 $187,315 $15,585-$17,788$72,625 $118,185 47,274 -$9,351-$10,673 $43,575 $70,911 14,840 $60,609 $84,728 $75,375$85,751 2,500 3,150 3,900 10 12 13 14 15 35,00035,000 69,96095,400 10Depreciation: Accelerated from table below 31,800 Total operating costs 16 12EBIT (or Operating income) 18 14 | EBIT (1-T) = After-tax project operating income 2016 EBIT (1 - T) Depreciation 13Taxes on operating income 40% -6,234 7,115 29,050 17 19 15 Add back depreciation 69,96095,400 31,800 21 17 Terminal Cash Flows at Time = 4 2218 Salvage value (taxed as ordinary income) $25,000 Tax on salvage value 0.4 x (SV - BV of equipment at t-4) After-tax salvage value $10,000 $15,000 24 20 NOWC = Recovery of net operating working capital 21 $3,500 Project free cash flows = EBIT(1-T) DEP -CAPEX-NOWC 26 $215,500 $60,609 $84,728 $75,375$104,251 23 Text Unit sales