Having issues with question 4.

Question 4 Refer to Questions 2 and 3. The land for the factory will cost $830,000 The factory will cost $9,510,000 to build and construction will take two years with construction costs payable in equal installments at the start of each year. The factory will operate for 20 years. At the end of its 20 year lifespan, the land can be resold for $450,000 . There is a 70% probability that the factory's net operating cash flows will be $1,426,161 ; however, there is a 30% chance that net cash flows will only be $901,158 . You may assume that net operating cash flows are received at the end of each year. a) What are the Expected net operating cash flows per year? (1 Mark)(Round your answer to 2 decimal places)

b) What is the Internal Rate of Return for the project? (1 Mark)(Round your answer to one one-hundreth of a percent)

c) What is the Net Present Value of the project? (1 Mark)(Round your answer to 2 decimal places)

d) Should Anna recommend that the J Corporation build the factory? (2 Marks)

Question 2: Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. In order to assess the viability of the project, Anna must first calculate the rate of return that equity holders expect from the company stock. The annual returns for J Corp. and for a market index are given below. Currently, the risk-free rate of return is 2.4% and the market risk-premium is 5.0%

a) What is the beta of J Corp.'s stock? (1 Mark)(Round your answer to two decimal places)

Answer:1.50

b) Using the CAPM model, what isthe expected rate of return on J Corp. stock for the coming year?

Answer: 7.95%

Question 3: Refer to Question 2. Now that Anna has determined an appropriate rate of return for J Corp.'s stock, she must calculate the firm's Weighted Average Cost of Capital (WACC). There are currently 55.6 Million J Corp. common shares outstanding. Each share is currently priced at $17.85 . As well, the firm has 10,000 bonds outstanding and each bond has a face value of $10,000, a yield to maturity of 3.87% and a quoted price of $10,287.10 . J Corp.'s tax rate is 30%. J Corp. has no preferred shares outstanding.

What is J Corp.'s WACC?

Answer: 7.45%