ABC Ins is looking to launch an acquisition of a target for $3 billion. The target is expected to generate cash flows for five years. Table 1 below shows the expected cash flows of the target along with the acquisition cost. Table 2 shows the financial data required to generate a discount factor for the cash flows. 1. Calculate the discount rate (WACC) for the acquisition 2. Evaluate the deal using NPV, IRR, and Payback. Consider the following: Table 1 Cost of acquisition: Cash flow, 1 Cash flow, 2 Cash flow, 3 Cash flow, 4 Cash flow, 5 Table 2 Debt/Equit Target cost of debt l 12.00% Tax rate S3.0 billion 0.40 S550 million S700 million S825 million S1.2 billion S1.5 billion 30% 4.0% 1.14 10.0% rate Beta with SPX Return on SPX Use the cash flows associated with Table 1 (there is no salvage value after year 5 and calculate the firm's cost of capital using the information in Table 2. Find the NPV and IRR on the proposed acquisition