Use the following information to answer 31-34. Koka Kola is evaluating the idea of selling a new drink under its brand for the next 10 years. a. Koka Kola spent $750,000 on market research regarding a new drink. b. To start the production of the new drink, Koka Kola needs to purchase new machines and equipment that will cost $3,500,000 today. These assets will have a residual value of $1,000,000 after 10 years. Koka Kola uses a straight-line method to depreciate its assets. C. The factory that will be used to produce the new drink can create a present value of $1,200,000 if used otherwise. d. For the next 10 years, the sales from this project are estimated to be $15,000,000 per year above what they would be if the project was not accepted. Production and other costs are estimated to be $10,000,000 per year above what they would be if the project was not accepted. f. The appropriate tax rate for Koka Kola is 40% The capital of the firm includes 45% of equity and 55% of debts 8. h. Cost of equity is 18%, and the before-tax cost of debt is 7%. 31. What is the WACC of the firm? a. 8.25% b. 9.06% c 10.41% d. 11.31% e. 12.97% 32. What is the depreciation expense per year created by the project? a. $160.000 b. $180.000 C. $200,000 d. $250.000 e. $300.000 33. What is the incremental cash flow per year of the project for year 1-9? a. $3.080,000 b. $3.100.000 C. $3.120.000 d. $3,280,000 e. $3.300.000 34. What is the NPV of the project? a. $12,975,358 b. $13,280.481 C. $14.388,695 $15,934,383 $16,542,179