Summer 2022 Use the following information for questions 26-28 Tennessee Titans is considering installing a retractable roof on the current football stadium it owns. The team is provided with the following information. a. The installation of the customized roof will cost $100 million fully installed and has a 50-year life. It will be depreciated to a book value of $0 after 50 years. Due to its nature, no salvage is expected from the roof installation. b. The roof is expected to bring in many NCAA championship events, Superbowl, and soccer events, and generate $14 million in ticket sales each year for the next 50 years. c. Because of the expansion, operating costs will increase by $2 million per year. d. The team will need an increase in net working capital by $10 million, which is expected to be liquidated at the same amount. e. The team has already spent $125,000 researching the various designs of the roof. f. Tennessee Titans' marginal tax rate is 35.00%. g. Tennessee Titans is 60.00% equity-financed. h. Tennessee Titans' 50-year, semi-annual pay, 5% coupon bond sells for $888.88. i. Tennessee Titans' stock currently has a market value of $40 and the company believes the market estimates that dividends will grow at 2.5% forever. Next year's dividend is projected to be $3. 26. What is the annual incremental cash flow that this project will bring in? a. 7,500,000 b. 7,750,000 c. 8,000,000 d. 8,500,000 e. 8,725,000 27. What is WACC of Tennessee Titans? a. 6.9171% b. 7.4745% c. 8.1401% d. 9.0025% e. 10.153% 28. What is the NPV of this project and should the team take the project? a. $897,762/Yes, because NPV>0 b. $897,762/No, because NPV>0 c. $766,052/No, because IRR is lower than the WACC d. $766,052/Yes, because IRR is greater than the WACC 10