Use the following information to answer questions #45 through #50. A 3-year project will cost $60,000 to construct. This will be depreciated straight-line to zero over the 3-year life. Projected sales = 7,000 units per year, price per unit-$25 and variable cost per unit-$14. Fixed costs $30,000 per year. The tax rate=30% and the debt-to-equity ratio is 1. The firm has outstanding 8% annual coupon bonds with 9 years until maturity selling at 109:0. The firm just paid a $2.00 dividend on its common stock, the dividend growth rate is 5% and the stock currently sells for $28 per share. 60,000-0/3 45. What is the operating cash flow in year 22 = 20,000 27,000 (30) = 8,100 &$18900 7,000 (25-14) = 77,000 b. 27,000 -8,100-18.900 18,900 + 20,000 c. $34000 77,000-30,000 = 47,000 4,000 -20 000 = 29,000 $38900 MUST e. None of the above. Correct answer = 38,900 isioner LE of OWGI 49. What is the NPV of the project? (Assume the appropriate discount rate is 9,57%) to pu is wi IS swe a $7656 b. $17360 c. $37475 d. $67475 e. None of the above. Correct answer 50. What is the discounted pay-back period? (Round to higher year) a. 0 years b. 1 year c. 2 years d. 3 years e. None of the above. Correct