Question
YEAR 0 1 2 3 4 5 Sales 137,541.00 137,541.00 137,541.00 137,541.00 137,541.00 Cost of Goods 68,626.00 68,626.00 68,626.00 68,626.00 68,626.00 S&A 30,000.00 30,000.00 30,000.00
YEAR 0 1 2 3 4 5\ Sales 137,541.00 137,541.00 137,541.00 137,541.00 137,541.00\ Cost of Goods 68,626.00 68,626.00 68,626.00 68,626.00 68,626.00\ S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00\ Depreciation 21,725.00 21,725.00 21,725.00 21,725.00 21,725.00\ Investment in NWC 1,183.00 577.00 577.00 577.00 577.00 577.00\ Investment in Gross PPE 108,625.00 \ \ The firm has a capital structure of 35.00% debt and 65.00% equity. The cost of debt is 10.00%, while the cost of equity is estimated at 13.00%. The tax rate facing the firm is 40.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year)\ \ What is the NPV of the project? (Hint: Be careful about rounding the WACC here!)\ \ Submit\ Answer format: Currency: Round to: 2 decimal places.
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