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The Brassy Pet Shop is a publicly traded company. It is considering a new project. This project will have an estimated life of 3 years.

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The Brassy Pet Shop is a publicly traded company. It is considering a new project. This project will have an estimated life of 3 years. Construction will cost $90,000 and the annual depreciation will be $30000. Under the project, sales will increase by $50000 per year and costs will rise by $15000 in each of the three years. In addition, the company has just completed a technical feasibility report for the project and paid $10000. The project will have a salvage value of \$12000. Currently, Brassy's estimated cost of debt (before tax) is 6\%. It's stock beta is 1.5. The current rate for T-bill is 3% and they believe that a market risk premium of 7% should be used to calculate the company's cost of equity. Right now, the target capital structure of the company is 40% debt and the company does not issue preferred stocks. The firm's tax rate is 20 percent. A. What is the WACC of the company? B. What is the payback period of this project? C. Using NPV, should the company accept the project

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