Suppose Coca Cola firm is considering an investment that would extend the life of one of its facilities for 5 years. The project would require upfront costs of $8M plus $35M investment in equipment. The equipment will be obsolete in 11 years and will be depreciated via straight-line over that period (Assume that the equipment can't be sold). During the next 5 years, Coca cola inc expects annual sales of 62M per year from this facility. Material costs and operating expenses are expected to total 40M and 4.8M, respectively, per year Coca Cola expects no net working capital requirements for the project, and it pays a tax rate of 34%. Coca Cola has 79% of Equity and the remaining is in Debt. If the Cost of Equity and Debt are 17% and 6% respectively, should they take the project?

Answer the following

a) WACC (in percentage, thus 3.8% must be entered as 3.8);

b) Incremental FCF at 0;

c) Incremental FCF from year 1 to year 5;

d) NPV. All dollars answers must be submitted in Millions