Suppose Guthries Golden Fried Chicken Fingers is considering opening a new location in Pullman. You have been asked to conduct a capital budgeting analysis to determine its feasibility. Working with a local developer you have determined that it would cost $390,000 to purchase the necessary land and construct and furnish the restaurant. This restaurant project would have a 3-year life and be depreciated straight-line to zero, after which the accumulated effects of cooking fried food would require the restaurant be torn down and the land sold, yielding a before-tax salvage value of $50,000. You expect the restaurant to generate revenue of $500,000 per year and have operating expenses of $350,000 per year. The net working capital investment is $25,000. The tax rate is 34%. The risk of this project is very similar to the company's other businesses. The company's capital structure is as follows: Common Stock: 1 million shares outstanding, currently selling for $50 per share. The stock has a Beta of 1.4. Bonds: 30,000 bonds outstanding, $1000 face value for each bond, 7.34% annual coupon, 10 years to maturity, selling at 110% of par. Market risk premium: 8% Risk free rate: 3%

SOLVE WITHOUT SPREADSHEET SHOW WRITTEN WORK PLZ:)

X Capo Shox Sun Word 3 Microsoft Word - X su Son Out X Connect Net The X + .amstedu/webapp/pment_id=2173471_18course id=_266553.18.content_id=444010518cuestion num_243=1 tonglestate Showstapa Tree mondo maining Time:03 minutes, 53 seconds stion Completion Status stion 25 40 points Suppose Guthrie's Goldea Fried Chicken Fingering opening new location in Pullman You besked to conduct a capital budgeting analysis to determine its feasibility, Working with local developer you Sve determined that it would 5.990.000 to purchase the nearland and constructId from the restaurant. This restaurant project would have a 3-y life sodbe delight to zro, after which the seemed effects of cooking fried food would require the rest be tom down and the land old yielding a before-tex salvage value of $50.000. You expect the restaurant to get event of $500.000 per yuntamil operating wees of 350.000 per year. The networking capital investment is 525,000. The tax rate is 3. The risk of this project is very similar to the company's businesses. The company's capital structure is as follows Coupon St million shares outstanding curly selling for $50 per share. The storkhan a Beta of 14 Bonds: 30,000 hind outstanding, 510ne value for each bond. 734% anual.coupon, 10 years to martty, ling at 10% of par Marisku Rifree On a piece of paper pratele cetatile that you will photography and call me tite answers to the following a What is the projects operating cash flow (OCP during its three year life? b. What is the project's cash flow from assets CFFAR L. What is the firm's weighted average cost of capital (WACC d. What is the projects iet present Value INVID Provide the calculate the response to the union I will to the in your written work Die dy O Type here to search DOLL Peug Pasar Delite Wert F12 F10 F11 FO EZ F8 F5 FO LO Backstage A ) 0 % & 7 # 8 9 6 12 5 4 3 ) X Capo Shox Sun Word 3 Microsoft Word - X su Son Out X Connect Net The X + .amstedu/webapp/pment_id=2173471_18course id=_266553.18.content_id=444010518cuestion num_243=1 tonglestate Showstapa Tree mondo maining Time:03 minutes, 53 seconds stion Completion Status stion 25 40 points Suppose Guthrie's Goldea Fried Chicken Fingering opening new location in Pullman You besked to conduct a capital budgeting analysis to determine its feasibility, Working with local developer you Sve determined that it would 5.990.000 to purchase the nearland and constructId from the restaurant. This restaurant project would have a 3-y life sodbe delight to zro, after which the seemed effects of cooking fried food would require the rest be tom down and the land old yielding a before-tex salvage value of $50.000. You expect the restaurant to get event of $500.000 per yuntamil operating wees of 350.000 per year. The networking capital investment is 525,000. The tax rate is 3. The risk of this project is very similar to the company's businesses. The company's capital structure is as follows Coupon St million shares outstanding curly selling for $50 per share. The storkhan a Beta of 14 Bonds: 30,000 hind outstanding, 510ne value for each bond. 734% anual.coupon, 10 years to martty, ling at 10% of par Marisku Rifree On a piece of paper pratele cetatile that you will photography and call me tite answers to the following a What is the projects operating cash flow (OCP during its three year life? b. What is the project's cash flow from assets CFFAR L. What is the firm's weighted average cost of capital (WACC d. What is the projects iet present Value INVID Provide the calculate the response to the union I will to the in your written work Die dy O Type here to search DOLL Peug Pasar Delite Wert F12 F10 F11 FO EZ F8 F5 FO LO Backstage A ) 0 % & 7 # 8 9 6 12 5 4 3 )