This is a budgeting and project evaluation problem for firm ABC. In 2015, the firm needs to make its decision on a project. The investment is shown in the table. The sales/revenue in each year from 2016-2021 is $11,000 without considering inflation. However, they predict the inflation rate is 2% per year. At the end of the year 2021, the machines can be sold for $8,000. Think over how to determine the terminal cash flow. Capital depreciation plan is shown in the table, first please predict the cash flow in the sheet cash flow. In the sheet cost of capital, the firm’s capital structure as shown in the table. Its debt includes loan from bank (loan interest rate is 5%) and corporate bond, which is trading in the secondary market. Considering this project is riskier than the firm projects on average, the specific project required rate of return is 0.25% higher than the firm average cost of capital. Calculate the firm WACC, the project required rate of return and finish the sheet.