Tulip Company is evaluating a project that requires a $143,000 investment. The anticipated cash flows are $52,000 in the first year, $23,000 for the second year, no cash flow for the next 2 years, $50,000 in the fifth year and $2,000 in sixth year. There is no salvage value for this project. Tulip Company currently has a 45% debt and 55% equity structure. Their most recent $1000 face value bond is selling for $1150. This bond has a coupon rate of 12% which are paid yearly and 9 years to maturity. Tulip Company uses CAPM model to calculate its cost of equity. It has a beta of 1.2. The current 10 year Treasury Bond has a 3.2% yield. For the corresponding period, S&P 500 index has a return of 18%. The applicable corporate tax rate for Umbrella is 10%.

a) What is the approximate cost of debt for this company after tax?

b) What is the cost of equity for this company?

c) What is the WACC for this company?

d) What is the approximate NPV of this project for Umbrella Company?