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annual rate of 4%. The current price of a share of stock is $45. The firm believes internally generated funds will be sufficient to

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annual rate of 4%. The current price of a share of stock is $45. The firm believes internally generated funds will be sufficient to maintain the firm's optimal capital structure without issuing additional common stock. Assume at the end of year 10 the project is discontinued and sold for $5,000,000. Use an Excel spreadsheet to determine the cash flows from the project. Determine internal rate of return for the project. Using the information in the previous paragraph, determine the WACC and determine the net present value of the project using that WACC.

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