A = 9

B = 1

C = 7

D = 3

Suppose ABC firm is considering an investment that would extend the life of one of its facilities for 5 years. The project would require upfront costs of $8M plus $42M investment in equipment. The equipment will be obsolete in 11 years and will be depreciated via straight-line over that period (Assume that the equipment can't be sold). During the next 5 years, ABC expects annual sales of 60M per year from this facility. Material costs and operating expenses are expected to total 31M and 2.8M, respectively, per year. ABC expects no net working capital requirements for the project, and it pays a tax rate of 33%. ABC has 79% of Equity and the remaining is in Debt. If the Cost of Equity and Debt are 17% and 6% respectively, should they take the project?

*I need the WACC, Incremental FCF at year 1, FCF at year 2, FCF at year 3, FCF at year 4, FCF at year 5, and the NPV*