1. Miller Manufacturing has a target debt–equity ratio of .45. Its cost of equity is 14 percent, and its cost of debt is 5 percent. If the tax rate is 40 percent, what is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %.

2. Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3.12 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2292271 in annual sales, with costs of $839800. If the tax rate is 36 percent and the required return on the project is 10 percent, what is the project's NPV?