HW Problems 1: XYZ Corp is investing in a machine which costs $100 (million) today. The cashflow of $2 of year 5, as shown below. Answer the following questions: machine is expected to generato net 2atthe end of Year I. The net cashflow will increase at the rate of 25% per year till the end (a) First compute the future cashflows. Lay them in a table similar to Practice Problem on page 2 above. Time Cash Flow 2 100 (b) If the WACC is 12%, what is the NPV? (c) What is the IRR of the project? (d) What is the Payback Period (2 places of decimal) (e) What is the Discounted Payback Period (2 places of decimal) () What is the Profitability!ndex at WACC of 12%? 9) What is the Equivalent Annual Annuity of the project