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Use the following information to answer the next five questions: Consider the after-tax cash flows below from a project that is being considered by Despondus

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Use the following information to answer the next five questions: Consider the after-tax cash flows below from a project that is being considered by Despondus Corporation. Since the project is an extension of the firm's current business, it carries the same risk as the overall firm. [ Year o 1 2 3 4 5 Cash Flow -$479,000 $103,000 $67,000 $107,000 $92,000 $102,000 Despondus Corporation's common stock is currently priced at $124.05, and there are 713,000,000 shares outstanding. A dividend of $4.16 per share was just paid, and dividends are expected to grow at a constant rate of 5.48% per year. The company has 8,120,000 bonds outstanding that mature in 15 years and are currently priced at $943 per bond. The coupon rate is 11.35%, and the bonds make semiannual interest payments. The company's tax rate is 33%. Question 25 2 Pcs What is Despondus Corporation's weighted average cost of capital (WACC)? What is the net present value of the project? (Round to the nearest dollar.)

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