Sociology homework help. Proposal A New FactoryAssume discount rate or weighted average cost of capital 10%- Ignore all taxes and depreciation.A company wants to build a new factory for increased capacity. Using NPV method of capital budgeting. Building new factory will increase capacity by 30%Current capacity is $10 million of sales with 5% profit marginFactory Cost $10 million to buildNew capacity will meet company need for 10 yearsThe factory is worth $14 million over 10 years. Should this project be accepted or rejectedExplain effect of higher and lower cost of capital on firm’s long-term financial decision.Apply calculations analyze the use of capital budgeting techniques in strategic financial management
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