Year 1 Year 2 Year 3 Year 4 Revenue Each Planet Destroyed 25000 (Fixed Cost) Number of Planet Destroyed per Year 10 (Variable Cost) Fixed Cost Per Year 75000 Operating Margin Variable Cost Per Planet 10000 Other Revenue Salvage Value Promised by the Ewoks 20000 (Depreciation Expense) Total Depreciation 160000 Earnings Before Interest and Taxes (EBIT) Initial Purchase of Equipment 100000 (Interest) Installation 60000 Earnings Before Taxes Net Operating Working Capital 40000 (Taxes) Interest Rate to Borrow Capital 12.50% Net Income Tax Rate 40% Dividend Amount Per Year 5 Stock Price 100 FCF Growth of Stock 11.67% Cost of Debt Total % Amount of Capital Borrowed 40% Cost of Equity Total % Amount of Capital of Equity 60% WACC NPV IRR