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Revenues Year o Years 1 to 10 3.62 - Manufacturing Expenses -0.4 - Marketing Expenses -0.15 -Depreciation -05 EDIT 257 -Teen (40%) -1.03 Unlevered net

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Revenues Year o Years 1 to 10 3.62 - Manufacturing Expenses -0.4 - Marketing Expenses -0.15 -Depreciation -05 EDIT 257 -Teen (40%) -1.03 Unlevered net income 154 Depreciation *05 - Addition to Net Working Capital -02 - Capital Expenditures 10 Free Cash Flow 1.14 Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic figs for home gaden i systems. It has made the above est free cash flows resulting from such a decision. There are concerns of the sensitivity of this project to changes in the cost of capital. For what cost of capital does this project break? O A 13% B 119 C9% D. 79

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