Consider a project with the following data: arabe = 6% OCF. = $100,000 Ky = 129 OCF14 = $39,800 = 25,000 ($5 - $3) (1 - .34)+$20,000 0.34 K;=requity = 27.84% OCFs = $43.100 = $39,800 + $5,000 (1 - 34) K=rwacc = 8.74% T=Tax rate = 34% Debt-to-equity ratio = 4 Risk-free rate = 2% The 5-year project requires equipment that costs $100,000. If undertaken the shareholders will contribute $20,000 cash and borrow $80.000 at 6% with an interest-only loan with a maturity of 5 years and annual interest payments. The equipment will be depreciated straight-line to zero over the 5-year life of the project. There will be a pre-tax salvage value of $5,000. There are no other start-up costs at year 0. During years 1 through 5, the firm will sell 25,000 units of product at $5; variable costs are $3; there are no fixed costs. What is the NPV of the project using the WACC methodology? $49,613.03 $58,028.68 $102,727.55 $315,666.16