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Suppose that a local restaurant is trying to evaluate the value of adding a food truck to their business. The restaurant is financed with a

Suppose that a local restaurant is trying to evaluate the value of adding a food truck to their business. The restaurant is financed with a bank loan (debt) at 9.00% per year, and has owners (equity) who want a 16.00% annual return on their investment in the business. The owners will raise money for the food truck with a ratio of 69.00% debt and 31.00% equity. The tax rate facing the firm is 30.00%. The owners have estimated that the food truck will create an annual after-tax cash flow of $75,000.00 for the business. The cost of the food truck will cost $201,712.00 today. The project will be evaluated over a 5-year period.

What is the NPV of this project? Please also show me how you calculated the WACC.

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