The Rare Find 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%

Rare Find 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.

Calculate the WACC for the firm.

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

Calculate the net present value for the project