USE THE FOLLOWING INFORMATION TO ANSWER 33-37 Dunaway Industries is evaluating the idea of expanding their production facility in Cobb County. The CFO gathered the following data. - Dunaway Industries spent $500,000 researching other sites for their expansion. - The equipment needed for the expansion will cost $25,600,000 fully installed. The equipment will be depreciated over 20 years to a salvage value of $1,000,000. Dunaway Industries sell the equipment for salvage value (i.n. If Dunaway accepts the project, the company will - If Dunaway Industries adds the new equipment, sales are expected to increase by $17,400,000 and costs are expected to increase by $10,000,000. - The appropriate tax rate for Dunaway Industries is 30% - The capital of the firm includes 70% of equity and 30% of debt. - Dunaway Industries recently issued a bond with 30 years to maturity that pays a coupon of 7.50% semiannually. The $1,000 par bond sold for $956.77. - The market believes that Dunaway Industries will pay a dividend of $2.42(D1=2.42) on their common stock next year and that the dividend will grow at 4.00% forever. The current stock price is $22.00. 36. What is the NPV of the project? a. $14,036,716.31 b. $12,406,891.65 c. $10,856,194.36 d. $11,906,198.59 e. $15,384,686.88 37. What is the IRR of the project? a. 21.2% b. 21.1% c. 20.1% d. 19.9% e. 19.7%