Future$-$Proof Plastics Ltd$.$ is evaluating a new project to acquire a specialized recycling machine. This machine is expected to significantly reduce waste and improve material efficiency. The project has an estimated useful life of $4$ years. Project Details: $1.$ Initial Investment $($Year $0)$: o Purchase Price of Machine: $$350,000$ o Installation & Commissioning Costs: $$30,000$ o Initial Working Capital Requirement: $$25,0002.$ Annual Operating Information $($Years $1-4)$: o Incremental Annual Revenues: $$200,000$ o Incremental Annual Operating Costs: $$70,0003.$ Depreciation: o The machine will be depreciated using the straight$-$line method for tax purposes. $4.$ Corporate Income Tax Rate: o Future$-$Proof Plastics Ltd$.$ faces a corporate income tax rate of $25\%.5.$ Terminal Value $($End of Year $4)$: o At the end of its $4-$year useful life, Future$-$Proof Plastics will not sell the machine in the open market. Instead, they have a contractual obligation to dismantle the machine and remove it from the factory at a cost of $$15,000.$ This cost is fully deductible for tax purposes in Year $4.$ o Furthermore, due to its specialized nature and the company's commitment to sustainability, the machine is expected to have no salvage value at the end of its life, and it cannot be donated for any tax benefit. $6.$ Cost of Capital Information: Common Equity: Future$-$Proof Plastics' common stock currently trades at $$40$ per share. The company just paid an annual dividend $($D$0)$ of $$2\mathrm{.}00$ per share. Analysts expect the company's dividends to grow at a constant rate of $5\%$ per year indefinitely. Debt: The company has outstanding bonds with a face $($par$)$ value of $$1,000,$ a $7\%$ annual coupon rate $($paid annually$),$ and $10$ years remaining to maturity. These bonds are currently trading in the market at $$950$ per bond. Capital Structure Weights $($Market Values$)$: The total market value of the company's outstanding common equity is $$400$ million. The total market value of the company's outstanding long$-$term debt is $$200$ million. Questions: $1.$ Calculate Future$-$Proof Plastics Ltd$.\text{'}$s Weighted Average Cost of Capital $($WACC$).$ Show all steps clearly$2.$ Calculate the Net Present Value $($NPV$)$ of this project. Show all your cash flow computations. $3.$ Based solely on the NPV criterion, should Future$-$Proof Plastics Ltd$.$ undertake this project?