SJB Corp is considering the expansion of their building. The expected cash outlay for this project is $100,000. The new building is expected to generate net cash flows of $30,000 in year 1, $40,000 in year 2 and $110,000 in year 3. SJB wants to maintain their current capital structure (see balance sheet below). Their current outstanding bond yield is 5%, and new bonds can be issued for 4%. Currently, the stock for SJB has a dividend yield of 2% and their expected growth rate is 7%. In the past, SJB stock has averaged $30.00 a share and is considered to be of average risk. SJB is subject to a 32% marginal tax rate. You must 'show your work' (in the spread sheet) to receive full credit. A) Should SJB Corp pursue this project? Why or why not? B) If they pursue the project, what would their projected balance sheet look like? SJB Corp Balance Sheet (Current) Assets Total Assets 300,000 Claims on Assets Total Debt $ 180,000 Total Equity $120,000 Total Claims $300,000 (B) SJB Projected (Put your answer here) Assets Claims on Assets