WACC - Debt is 65% and Equity is 35% of this firm's capital structure. Interest rate on the debt is 7.5%, firm's tax rate is 22%. Firm's beta is 1.40, Risk Free Rate is 0.82%, Market Return Rate is 8.0%.

Project Investment Outlay, Year 0 - $1,000,000 Project Investment Life - 10 years

Project Depreciation - $100,000 / year

Project Salvage Value - $30,000

Working Capital Base of Annual Sales - 10% Expected inflation rate per year - 3.0% Project Tax Rate - 30%

Units sold per year - 40,000

Selling Price per Unit, Year 1 - $40.00

Fixed operating costs per year excluding depreciation - $175,000 Manufacturing (Variable) costs per unit, Year 1 - $30.00

Determine capital budget analysis for this Base Case using the Net Present Value, Internal Rate of Return, Profitability Index and Payback in years methods