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You are going to run four conventions a year in various locales. The conventions will last for three years. Fixed assets will cost $300,000 up

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You are going to run four conventions a year in various locales. The conventions will last for three years. Fixed assets will cost $300,000 up front (you will need a scaled replica of the enterprise, and it has to be detailed as Trekkies are very meticulous). They will be depreciated straight-line to 0 over the life of the conventions. Variable costs will be about $400,000 a year. (That's a lot of Spock ears!) Sales are estimated at $600,000 each year. Required NWC will be $50,000. Taxes will be 34%. You have estimated your firms Beta to be 1.4. You expect the TSX to return 10.5% and government of Canada T-Bills to pay 2% You have had your bond issue rated BBB.' You will have no preferred shares. You want to raise 60% of your funds through stock, and 40% through bonds. Should you go ahead with this project? Support your answer with the relevant figures and show vour work

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