Duck Commander is considering the purchase of a facility in IL to expand their operations. This project makes Phil happy, happy, happy yet Willie requires a financial analysis to explore whether this project makes sense. The facility will cost $$4$ million and will have a useful life of $10$ years. At the end of the $10$ years, the expected salvage value is $$20,000.$ The facility will generate additional cash flow each year of $$600,000.$ Duck Commander$$s cost of capital is $8\%.$ Round answers to nearest dollar. Question $1(6$ points$)$ Assume Willie uses the net present value method to evaluate this project. Calculate the net present value $ $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Question $2(2$ points$)$ Based on your answer to #$1,$ should Willie accept or reject this project? Question $3(2$ points$)$ Jep mentioned that perhaps they should be using IRR to evaluate these projects. Uncle Si exclaimed irrr$-$irrrrrrrr$-$urghhhhh?! What does the acronym IRR represent?Duck Commander is considering the purchase of a facility in IL to expand their operations. This project makes Phil hap

analysis to explore whether this project makes sense. The facility will cost $$3$ million and will have a useful life of $10y$

salvage value is $$60,000.$ The facility will generate additional cash flow each year of $$400,000.$ Duck Commander's co

dollar.

Question $1(6$ points$)$

Assume Willie uses the net present value method to evaluate this project.

Calculate the net present value $

Question $2(2$ points$)$

Based on your answer to #$1,$ should Willie accept or reject this project?

Question $3(2$ points$)$

Jep mentioned that perhaps they should be using IRR to evaluate these projects. Uncle Si exclaimed irrr$-$irrrrrrrr$-$

urghhhhh?! What does the acronym IRR represent?