7. A new project has been brought to the attention of NCJ, Inc. This project is not typical for NCJ. While the beta on NCJ's stock is 1.6, an analyst has determined that a beta of 1.1 represents the risk of this project. The riskfree return is 5.80% while NCJ's required rate of return on debt is 6.80%. The expected return on the market is 15.30000%. This project costs $14,800.00 now and will produce one and only one cash flow of $63,000.00 that will occur 19 years from now. Assume the marginal tax rate is 41.00% and NCJ borrows 33% of its funds.

a. Determine the required rate of return on this project.

b. Determine the net present value of the project.

c. Determine the internal rate of return for this project.

d. Should NCJ accept the project? (Yes or No)