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Use the following information to answer the next three questions only: [see next page for a blank area to do calculations.] The firm gets 100%

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Use the following information to answer the next three questions only: [see next page for a blank area to do calculations.] The firm gets 100% of its capital from common stock. The equity holder's required rate of return is 10% and the firm's tax rate is 0%. The project involves an immediate investment of $13,000 for the purchase and installation of equipment. The equipment will be depreciated straight-line, over 4 years, down to a salvage value of $0. The project is expected to generate operating cashflows [=ebit(1t)+dep] in the amount of $4,200 at the end of each of the next four years. Assume that at the end of the fourth year the related equipment is sold which generates an additional after-tax cashflow of $1,800. W. What is the weighted average cost of capital (WACC)? 6. What are the total cashflows for each year (please indicate positive or negative)? 7. What is the net present value (NPV) of the project

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