The firm is looking to expand its operations by 10% of the firm’s net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm’s balance sheet.)The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment’s cost .The annual EBIT for this new project will be 18% of the project’s cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use the same marginal tax rate that you used in the Week 6 project. The hurdle rate for this project will be the WACC that you calculated in Week 6. The WACC was calculated as 8.5%

Income Statement
All numbers in thousands
Revenue	12/31/16	12/31/15	12/31/14
Total Revenue	20,425,000	19,820,000	18,605,000
Cost of Revenue	6,132,000	6,025,000	7,677,000
Gross Profit	14,293,000	13,795,000	10,928,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	9,312,000	8,625,000	7,639,000
Non Recurring	-	39,000	126,000
Others	1,221,000	1,015,000	938,000
Total Operating Expenses	-	-	-
Operating Income or Loss	3,760,000	4,116,000	2,225,000
Income from Continuing Operations
Total Other Income/Expenses Net	-138,000	-547,000	-302,000
Earnings Before Interest and Taxes	3,622,000	3,569,000	1,923,000
Interest Expense	75,000	90,000	107,000
Income Before Tax	3,547,000	3,479,000	1,816,000
Income Tax Expense	1,303,000	1,298,000	680,000
Minority Interest	-	-	-
Net Income From Continuing Ops	2,244,000	2,181,000	1,136,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	2,244,000	2,181,000	1,136,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	2,244,000	2,181,000	1,136,000

Balance Sheet
All numbers in thousands
Period Ending	12/31/16	12/31/15	12/31/14
Current Assets
Cash And Cash Equivalents	1,680,000	1,583,000	1,282,000
Short Term Investments	1,625,000	1,468,000	1,706,000
Net Receivables	546,000	474,000	365,000
Inventory	337,000	311,000	342,000
Other Current Assets	310,000	188,000	232,000
Total Current Assets	4,498,000	4,024,000	3,927,000
Long Term Investments	-	-	-
Property Plant and Equipment	17,044,000	15,601,000	14,292,000
Goodwill	970,000	970,000	970,000
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	774,000	717,000	534,000
Deferred Long Term Asset Charges	-	-	-
Total Assets	23,286,000	21,312,000	19,723,000
Current Liabilities
Accounts Payable	3,163,000	3,779,000	2,768,000
Short/Current Long Term Debt	566,000	637,000	258,000
Other Current Liabilities	3,115,000	2,990,000	2,897,000
Total Current Liabilities	6,844,000	7,406,000	5,923,000
Long Term Debt	2,821,000	2,541,000	2,434,000
Other Liabilities	1,806,000	1,517,000	1,809,000
Deferred Long Term Liability Charges	3,374,000	2,490,000	2,782,000
Minority Interest	-	-	-
Negative Goodwill	-	-	-
Total Liabilities	14,845,000	13,954,000	12,948,000
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	808,000	808,000	808,000
Retained Earnings	11,418,000	9,409,000	7,416,000
Treasury Stock	-4,872,000	-3,182,000	-2,026,000
Capital Surplus	1,410,000	1,374,000	1,315,000
Other Stockholder Equity	-323,000	-1,051,000	-738,000
Total Stockholder Equity	8,441,000	7,358,000	6,775,000
Net Tangible Assets	7,471,000	6,388,000	5,805,000