The Logic Co. has the following information:

Debt outstanding:$280 million

Before-tax cost of debt: 5%

Market cap:$650 million

Cost of common stock:11%

Tax rate: 21%

Logic is evaluating a project with the following information:

• Over the next five years EBIT will equal: 12 million, 13 million, 14 million, 15 million, 16 million respectively.
• An investment of $5 million is required in net working capital at the beginning of the project, which will be recovered at the end of the project.
• The cost of the equipment will be $30 million depreciated using straight-line to zero over the project's life, with no salvage value.
• The project requires an additional 1% risk premium above the firms WACC.

1.Calculate the WACC for the firm. (Enter percentages as decimals and round to 4 decimals)

2.Calculate the operating cash flows for the first year of the project.

3.Calculate the net present value for the project.(Round to 2 decimals)