To compute the appropriate rate for discounting the cash flows of the project, you can use the Weighted Average Cost of Capital (WACC) formula: Where: = Market value of the company's equity = Total market value of the company's capital (equity + debt) = Cost of equity = Market value of the company's debt = Cost of debt = Corporate tax rate Next, compute the initial investment required by summing up the initial equipment cost, additional equipment cost, and working capital needed. To compute earnings before taxes for years 1 through 7, you will need to calculate the sales revenue, subtract variable expenses and fixed cash operating expenses. To compute earnings after taxes for years 1 through 7, subtract the taxes (ordinary income and capital gain) from the earnings before taxes. To calculate the Operating Cash Flow (OCF) for years 1 through 7, use the formula: To compute the Terminal cash flow, calculate the salvage value of the additional equipment at the end of year 7. The Free Cash Flow (FCF) for years 1 through 7 can be found by subtracting capital expenditures and changes in working capital from the OCF. Then, compute the Net Present Value (NPV) and Internal Rate of Return (IRR) of the project using the cash flows and appropriate discount rate. Finally, determine if the project should be accepted by comparing the NPV to zero. If NPV is positive, the project is financially viable. Ensure to show all calculations step by step and double-check your results to provide accurate and reliable answers. Rare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The project falls under the government’s subsidy program for encouraging local agricultural products and is eligible for a one-time rebate of 25% on any initial equipment installed for the project. The initial equipment (IE) will cost $41,000,000. At the end of year 1, An additional equipment (AE) costing $3,500,000 will be needed at the end of year 3. At the end of seven (7) years, the original equipm