Company XYZ decides to invest in a $25,000,000 project. The company will finance the project with 50% debt and 50% equity. The term of the loan is interest only, compounded annually, 5%, and over 5 years. The project will allow the company to produce and sell an additional 100,000 widgets at $130 a widget. The cost of producing each widget is 50% of revenue. Furthermore, the project will fully depreciate in 5 years on a straight-line basis and the project will end. The tax rate is 21%

1. What is 1^st year CF to equity holders?
2. What is the 5^th year CF to equity holders?
3. What is the IRR?
4. If the companys required rate on this project is 10%, what is the NPV?
5. Would you accept it?