1. You've been asked to determine if a project to build a new branch for the Ola Nacho Factory is worth doing. Your firm's weighted average cost of capital is 8.75%, and the following costs are associated with the project (20 points): $300,000 in materials $100,000 in labor $50,000 in sunk costs over the past year with a surveyor and architect Depreciable life of 27.5 years The project is expected to generate the following cash flows Year 1 2 3 4 5 6 7 CF $15,000 $35,000 $50,000 $75,000 $100,000 $150,000 $100,000 $75,000 $50,000 $50,000 h 8 9 10 Calculate the payback period, the net present value, and the IRR. Do you accept the project