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IBL PROJECT Company has to consider the IBL project that can increase the value of the company overall The company pays 18% tax. The company will receive an interest retum on the additional fund that wil be invested and receive Income of $3400 The salvage value of the CAPEX is $13000 and after the project the company can sell the asset for $7000 Project A CAPEX Rent expense Supplies expense Prepaid expense Uslities expense Insurance expense Uncanned Revenue Gas Expense Project period 526,700 52700 $2750 S1500 51800 5500 $3200 5520 5 years Sales 510,500 Discount rate table 3% GDP Risk free Risk premium Interest Rate 6% 2.5% REQUIRED 1. Calculate the initial investment Aner tax cash flow and terminal value of the project 2. Calculate the discounted stack period of the project 3. Estimate PUMP REQUIRED 1. Calculate the initial investment, After tax cash flow and terminal value of the project 2. Calculate the discounted payback period of the project 3. Estimate the NPV and Pl of the project 4. What is the IRR of the project ? Project B's results are given on the table below DPBP NPV + PI IRR Payback Period 3 years 2200 1.20 15% 2.8 years 5. Considering project B which one is the best and why