Question 3 1 pts Consider a project with the following data: 1=r'debe = 6% OCF = $100,000 K-reset = 12 OCF14 = $39,800 = 25,000 ($5 - $3) (1 - 34) + $20,000 0.34 K;=requity = 27.84% OCF, = $43,100 = $39.800 + $5,000 (1 - 34) K=rwace = 8.74% t = Tax rate = 340 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 APV methodology? $49.613.03 $198.469 O $102,727.55 $56,348.77