4. You have just invented a new type of paper clips and you consider producing them on a large scale. This project requires an initial investment of $175,500 in year 0 and is expected to last for 5 years. You plan to spend $10,000 for advertising in year 0 and $2,000 in each of the following years. You also have other expenses of $10,000 per year (excluding year 0). The price per paper clips box is $2 in the first year and is expected to increase by 3% each subsequent year. You expect to sell 30000 boxes every year starting with year 1. (a) Construct a table containing the outflows, inflows and net cashflows for each of the years 0-5. (b) If the discount rate is 0, what is the NPV at year 02 [NPV= $73,048.15] (c) If the discount rate is 5% should you undertake this project? [Yes, NPV is positive] (d) What is the maximum discount rate for which the project should be undertaken? (IRR, 11.87%] (e) If the uncertainty component of your project is 3%, the inflation rate is expected to be 2.5% per year and the real rate of return on other investment projects is 4.4% should you undertake this project? [Yes, NPV positive and DIR