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The project requires 210 thousand dollars in investment to construct a temporary office complex that will produce a cash flow of 60 thousand dollars annually

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The project requires 210 thousand dollars in investment to construct a temporary office complex that will produce a cash flow of 60 thousand dollars annually for 5 years and thirty thousand dollars in the project's final year (year six). At the end of year six, the contractors will purchase the temporary structure for fifty thousand dollars. The weighted average cost of capital (WACC) is this project's required rate of return (RRR). The company has a capital structure of 40% debt and 60% equity. The after-tax cost of debt is 7% after a 2% adjustment, and the equity stakeholders require a 12% return for any new investments. Alternatively, the compariy can invest the equity share of the project requirement in a CD that will earn 16% annually with interest compounding quarterly for the same six years. This means no external debt will be incurred. Determine the expected value of this CD at the end of the six years. (15 points) Showing the work is required to earn points

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