Suppose we are considering a project that will generate sales of $100,000 per year for 3 years. It has costs of $80,000 per year. The initial cost of the investment is $50,000, which is depreciated straight line over 5 years. After three years, however, we will sell the equipment associated with the investment for $30,000. Net working capital investment is $20,000. Tax rate is 20%. We finance our company with the following:

$1,000,000 face amount of 20-year 5% bonds selling at 90% of par. Equity of 100,000 shares trading at $20 per share. Our equitys beta is 1.6. The market risk premium is 7% and the risk free rate is 3%.

What is this projects Operating Cash Flow? What is the projects Total Cash Flow?

What is the companys WACC? What is the projects NPV? Should we invest in the project? What operating cash flow would the project need to generate for it to generate a net present value of zero? How much revenue would the project need to generate for it to achieve a net present value of zero?

Please explain all step by step