A product manager is evaluating a new product with a 5-year production span. The forecasted annual sales are 15.000 units,
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(A) Find the firm's weighted average cost of capital.
(B) Suppose that the land purchase is financed via a 5-year loan at the nominal debt rate whose principal is repaid in full at maturity by using resources from the other activities of the firm. What is the APV of the project?