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show all work 2. The Toledo Computer Company is considering an expansion into a new product line that is Less risky than its existing product

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2. The Toledo Computer Company is considering an expansion into a new product line that is Less risky than its existing product line. The new product line requires a net investment (NINV) of $8 million. Over its 10-year economic life, the new product line is expected to generate annual net cash flows of \$1.0 million over the next 5 years and $2.8 million over the following 5 years. The firm's weighted-average cost of capital is 17 percent. The new product line has less systematic risk than the firm as a whole and requires a risk-adjusted discount rate of 12 percent. a. What is the project's NPV using the company's WACC? b. What is the project NPV using the risk-adjusted discount rate/ c. Should Toledo adopt the project

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