Question: Wind Walker Baked Beans (WIND) is considering a project with an initial cost of $105,000 and a single cash inflow occurring one year from today

Wind Walker Baked Beans (WIND) is considering a project with an initial cost of $105,000 and a single cash inflow occurring one year from today of $136,000.

WIND's capital structure consists of 30% debt and 70% equity. Its outstanding bonds have a yield to maturity of 4.7%. WIND has a beta of 0.91.

The risk-free rate is 2.3% and the market risk premium is 14%.

If WIND has a tax rate of 22%, what is the net present value of the project?

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