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Your company is planning to launch a product. The partial financial analysis for this decision is presented to you as follows: Click here for a

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Your company is planning to launch a product. The partial financial analysis for this decision is presented to you as follows: Click here for a formatted shell excel for this problem. The initial outlay (today) for the project (investment in all needed assets for the project including opportunity costs) is $206. The project lasts 5 years. The cash flows for the termination value, TV, is $102 (this includes the recovery of investments in working capital and net proceeds from liquidating all assets for the project). The company plans to finance 30% of these assets with debt, 10% with preferred equity, and the rest with common equity. The yield to maturity for the company's bonds is 9%, the cost of common equity is 17%, and the cost of preferred stock is 12%. The corporate tax rate is 30%. Less than a year ago, the company paid $2 for a marketing study. This study shows that the company can sell 200 units of new product a year for 5 years. The study shows that the price can be set at $3 per unit and the variable production costs represent 90% of price. The company will incur $4 in annual cash fixed costs. The annual depreciation is $11. The study also shows that the sales of existing products will decrease by 20 units (customers that will upgrade/switch to the new product). The selling price of existing product is $0.60 per unit and the variable cost is 80% of price. In answering the questions below, round to nearest 1 decimal, and do not use the dollar ($) sign. For example if your answer is $2,500.84 then enter 2,500.8; if answer is $30.459 then enter 30.5; if the answer is $40 then enter 40.0 In answering the questions below, round to nearest 1 decimal, and do not use the dollar ($) sign. For example if your answer is $2,500.84 then enter 2,500.8; if answe- is $30.459 then enter 30.5; if the answer is $40 then enter 40.0 1. What is the weighted average cost of capital (WACC) for this project/firm? In answering, do not enter the % sign; round to and use 1 decimal. For example, if the answer is 5.275% then enter 5.3; if your answer is 4%, you must enter 4.0, if it is 3.4%, you must enter 3.4 A A A A 5. Which of the following statements is correct? A. The IRR is greater than the WACC B. The IRR is lower than the WACC C. The IRR is the same as the WACC A 2. What is the annual EBITDA for this project? 3. What is the annual operating cash flow (OCF)? A 4. What is the NPV of this project? A/

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