Chapter 11 Chapter 11: Capital Budgeting: 1. World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Show all work and discuss each part. WACC: 9.75% Year 0 1 2 3 4 Cash flows $1,200 $400 $425 $450 $475 I a. Calculate NPV, IRR b. Calculate the payback and discounted payback c. Calculate the Profitability Index (PI) d. Make a decision as to what you would recommend about this project based on your results above and why