The Apex Manufacturing Company is considering a new investment. Financial

projections for the investment are tabulated below. Corporate tax is $30\%.($Cash

flows are in tk$.$ Thousands$)$

Requirement:

$($a$)$ Determine the cash flows of project for different years.

$($b$)$ The company has taken tk$.4000$ loan from AB Ltd$.$ at the rate of $9\%$ interest,

and issued $600$ shares with tk$.10$ per share in DSE for financing the project.

The average rate of return of DSE is $15\%$ while interest rate for BD

government's saving certificate is $6\%.$ If the beta of the firm is $1\mathrm{.}3,$ what is the

cost of capital $($WACC$)$ of the project? $($this part is yet to discuss$)$

$($c$)$ Calculate the NPV and evaluate the project based on the NPV$.$