Based on the inputs below prepare a capital budget analysis for this Base Case using theNet Present Value, Internal Rate of Return, Profitability Index and Payback in years

methods, determining whether the project is feasible. The Weighted Average Cost of Capital. also needs to be determined to complete the analysis.

Project Inputs:

Cost of Capital:

U$.$S$.$ Treasury $10-$year yield $=4\mathrm{.}31\%$

S&P $500$ Return $=12\mathrm{.}5\%$

Capital Structure $=$ Liabilities $(55\%),$ Equity $(45\%)$

Firm$$s Cost of Debt $=$ Prime Interest Rate plus $3\%$

Company$$s Beta $=1\mathrm{.}40$

Project Investment Outlay, Year $0-$ $$750,000$

Project Investment Life $5$ years

Project Depreciation $-$ $$150,000/$ year

Project Salvage Value $-$ $$25,000$

Working Capital Base of Annual Sales $10\%$

Project Tax Rate $22\%$

Inflation Rate for Selling Price$/$unit$,$ Variable Cost$/$unit$,$ and Fixed Costs $=4\mathrm{.}0\%$ after Year $1$

Units sold per year $40,000$

Selling Price per Unit, Year $1-$ $$40\mathrm{.}00$

Fixed operating costs per year excluding depreciation $-$ $$175,000$

Manufacturing $($Variable$)$ costs per unit, Year $1-$ $$30\mathrm{.}00$