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Financial Feasibility Analysis of the New PMS Technology: After combining the preceding analysis and calculations for NINV, WACC, and CFs, DelRay is considering whether this

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Financial Feasibility Analysis of the New PMS Technology: After combining the preceding analysis and calculations for NINV, WACC, and CFs, DelRay is considering whether this new PMS technology investment is worthwhile to invest or not. Therefore, the finance team would like to analyze and see financial feasibility with different capital budgeting decision methods as indicated below: Project's Payback Period The Net Present Value (NPV) Project Profitability Index (PI) The Internal Rate of Return (IRR) Required Analysis and Discussions: Based on the given information in the "Estimation of the Net Investment Value (NINV) of the New PMS Upgrade" section, calculate the NINV of this upgrade project for the initial year (1st year) (40 pts.). Given this capital structure and acquisition details, estimate the Weighted Average Cost of Capital (WACC) for this upgrade project (40 pts.). According to the financial projections for the following 4-year CF pro-forma, calculate the stream of CFs for this upgrade project (Hint: project assumptions and limitations are important to calculate CFs) (50 pts.). Based on NINV, WACC, and CFs results, perform a financial feasibility analysis with four capital budgeting methods as illustrated in "Financial Feasibility Analysis of the New PMS Technology" section (40 pts). Discuss your results and findings from NINV estimation, capital acquisition and WACC, flow of funds (CFs), and financial feasibility. Explain why is this worthwhile or not to invest in detail. In addition, explain the possible problematic areas and issues (e., cost of internal equity) to be improved for the project and for Delray's long-term financial success. Do not forget to support your arguments. You can solve this question using the main equations of those methods or using financial calculator or excel solutions as introduced in the textbook (30 pts)

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