You are the CFO of WBSan engineering company. WBS is planning to expand its business abroad. You need to decide whether the new project is feasible and whether it will create value over time. The project has an estimated lifetime of 10 years, after which the company will decide whether to stay abroad permanently or close-down its foreign activities. WBS has estimated that expanding abroad will have the following costs: 10,500,000 as initial investment at the start of the project and 100,000 each year throughout the next 10 years. Cash flows from foreign activities are estimated to be: 1.000.000 the first year, the cash flows are expected to increase by 8% each year after year. Assume all revenues are received at each year end. 1. Estimate the cost of capital for the company (WACC), knowing that the company has 70% equity 30% debt capital: the company's beta is 1.6, the T-bill is 3% and the return on the market is 11% cost of debt is 8% and tax rate 18% 2. Work out the Net Present Value (NPV).||