ABC Corp has a target debt/equity ratio of 0.25. It was $312.5 million in bonds outstanding with a yield of 5.5% and 62.5 million shares of stock outstanding with a current market price of $20 per share. The companys beta is 1.42 and the risk-free rate of interest is 4% with a market risk premium of 5.5%. The firm has a tax rate of 35%. The company is looking to raise $500 million to build a second factory. The new factory will increase output substantially. The table below shows the anticipated cash flows generated from the new factory including a salvage value in year 10.

Year	Cash flow ($ milll)
1	25
2	50
3	50
4	75
5	100
6	175
7	250
8	125
9	100
10	450

5. Calculate the NPV of the project.

6. Calculate the IRR of the project.

7. Calculate the payback of the project