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Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be 5152.820 .00

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Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be 5152.820 .00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be 557.244 .00 . The old equipment eurrently has no market value. The new equipment cost $88,617.00. The new equipment will be depreciated to zero using straight-line depreciation for the three year life of the project. At the end of the project the equipment is expected to have a salvage value of $13.297.00. An increase in net working capital of 556.318 .00 is also required for the life of the project. The corporation has a beta of 1.746 , a tax rate of 37.22%, and a target capital structure consisting of 58.42% equity and 41.58% debt. Treasury securities have a yield of 2.29% and the expected return on the market is 9.98%. In addition, the company currently has outstanding bonds that have a yield to maturity of 8.16%. For answers that are dollar amounts, please round to the nearest two decimal places. For answers that are a pertentage, please be sure to enter your answer as a percentage (for example, 1234 becomes 12.34% ). A. What is the total initial cash outflow? (show as negative number): 5 B. What are the estimated annual operating cash fows? 5 C. What is the terminal cash fow? $ D. What is the corporations cost of equity? 5 E. What is the WACC? F. What is the NPV tor this project? $

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