Things I need to find: Expansion Cost: 10% of PPE Salvage: 5% of New PPE Depreciation Charge: (cost - salvage) / estimated life Annual EBIT: 18% of New PPE The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 25% as the tax rate in this project. The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate is 9.79 Income Statement NET SALES GAIN FROM OPERATIONS NET INCOME From operations NET INCOME Inclusive of PPP loan forgiveness Balance Sheet Current Assets Other Assets Current Liabilities Long-Term Liabilities Owner Equity Retained Earnings unaudited audited 7,718,453 240,294 -37,819 FY 2020 audited 6/30/2020 3,682,800 377,937 2,216,077 6,642,301 4,456,261 450,798 SALES 21,537,080 20,737,825 less cost of goods sold -13,381,447 -13,019,372 8,155,633 OPERATING EXPENSES -8,014,269 -7,478,159 141,364 OTHER INCOME/EXPENSE -278,306 -278,113 PPP Loan Forgiveness 903,000 ASSETS -136,942 FY 2021 unaudited 6/30/2021 766,058 3,410,265 Property/Building/Equipment 9,173,052 9,731,266 384,853 TOTAL ASSETS 12,783,516 13,792,003 LIABILITIES 2,118,762 4,927,579 TOTAL LIABILITIES 7,046,341 8,858,378 EQUITY Fran Skinner Memorial Matching Fund 19,546 26,566 4,500,774 1,216,854 TOTAL EQUITY 5,737,175 4,933,625 12,783,516 TOTAL LIABILITIES & EQUITY 13,792,003