Your corporation is considering investing in a new product line. The annual revenues (sales) for the new product line are expected to be $129,769.00 with variable costs equal to 50% of these sales. In addition annual fixed costs associated with this new product line are expected to be $48,823.00 . The old equipment currently has no market value. The new equipment cost $64,497.00 . 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 $10,254.00 . An increase in net working capital of $54,134.00 is also required for the life of the project. The corporation has a beta of 1.495 , a tax rate of 30.45% , and a target capital structure consisting of 68.82% equity and 31.18% debt. Treasury securities have a yield of 3.64% and the expected return on the market is 8.89% . In addition, the company currently has outstanding bonds that have a yield to maturity of 6.49%.

For answers that are dollar amounts, please round to the nearest two decimal places. For answers that are a percentage, please be sure to enter your answer as a percentage (for example, .1234 becomes 12.34%).

1. What is the total initial cash outflow? (show as negative number): $
2. What are the estimated annual operating cash flows? $
3. What is the terminal cash flow? $
4. What is the corporations cost of equity? $
5. What is the WACC? %
6. What is the NPV for this project? $