Need to compute weighted average cost of capital for:Initial investment outlay of $30 million consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal yearProject and equipment life: 5 yearsSales increase: $25 million annuallyAssume gross margin of 60% (exclusive of depreciation)Depreciation: Straight-line for tax purposesSelling general and administrative expenses: 10% of salesTax rate: 35%
