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5. ABC Co. is analyzing a project with an initial cost of $110,000 and cash inflows of $65,000 in year 1 and $74,000 in year

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5. ABC Co. is analyzing a project with an initial cost of $110,000 and cash inflows of $65,000 in year 1 and $74,000 in year 2. This project is an extension of the firm's current operations and thus is equally as risky as the current firm. The firm uses only debt and common stock to finance its operations and maintains a debt- equity ratio of .45. After-tax cost of debt is 4.89, cost of equity is 12.78: tax rate is 35%. What is the projected net present value of this project

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