Assuming that you are Guta, answer the following questions: 1. Calculate Bashen's WACC using the data in Exhibit 1. 2. Calculate the project's cash ows using the data in Exhibit 2. Why is it important to take into account the effect of ination in forecasting the cash flows? Briey comment. 3. Evaluate the profitability of the project with the NP'J', IRE, MIRB, simple payback period, and discounted payback period methods. is the project acceptable? Briey explain. Why is le may method superiorto the other methods of capital budgeting? Briey explain. 4. Conduct the stand-alone risk analysis of re project with the sensitivity analysis and scenario analysis teclmiques. Explain why sensitiyity analysis and scenario analysis can be useful tools in the capital budgeting decisionmaking process when economic and nancial conditions are likely to change in the future