Capital Budgeting Techniques A potential investment project is expected to yield your company operating cash flows of $200,000 in year 1, $100,000 in year 2, and $50,000 in year 3. However, the project requires an upfront capital expenditure of $300,000. The project is of average risk, and the firm's weighted average cost of capital (WACC) is 8.0%. 2. Plot the cash flows for the project on the time line. a. What is the project's net present value (NPV)? Assume the project is of average risk. b. What is the criterion for accepting a project based on NPV? C. What is the project's internal rate of retum (IRRY? d. What is the criterion for accepting a project based on IRR? Assume the project is of average risk. e. What is the project's modified IRR (MIRR)? Assume cash flows can be re-invested at WACC. f. What is the project's Payback Period? g. What does the payback period tell managers about the project? h. i Should the project be accepted? Why? What should happen to the firm's stock price if the firm accepts the project