Home assignment 5 This is a comprehensive project evaluation problem bringing together much of what you have learned so far. Company ABC is a large publicly traded firm, a market leader in producing self driving agricultural machines. The company is looking at setting up a manufacturing plant overseas to produce a new line of self-driving tractors. This will be a four-year project. The plant and equipment will cost $100 million to build. The market data on ABC's securities is following Debt: 550,000 5.6 percent coupon bonds outstanding, 20 years to maturity selling for 108 percent of par; the bonds have a $1,000 par value each and make semiannual payments Common stock 22,000,000 shares outstanding, selling for $56 per share; the beta is 1.1. Market 7 percent expected market risk premium; 3 percent risk-free rate ABC faces 8 percent floatation costs of new common stock issues and 4 percent on new debt issues. ABC's tax rate is 35 percent. The project requires $5,5 million in initial net working capital investment to get operational (in years 1-3 investment in NWC is zero and in Year 4 $5,5 million is recovered)