I JUST NEED HELP ON QUESTION NUMBER 17

1. Use the following scenario for the next 6 questions:

   You recently went to work for Allied Components Company, a supplier of auto repair parts used in the after-market with products from Daimler AG, Ford, Toyota, and other automakers. Your boss, the chief financial officer (CFO), has just handed you the estimated cash flows for two proposed projects. Project L involves adding a new item to the firms ignition system line; it would take some time to build up the market for this product, so the cash inflows would increase over time. Project S involves an add-on to an existing line, and its cash flows would decrease over time. Both projects have 3-year lives because Allied is planning to introduce entirely new models after 3 years.

   Here are the projects after-tax cash flows (in thousands of dollars):

   Year	CFL	CFS
   0	($100)	($100)
   1	$10	$70
   2	$60	$50
   3	$80	$20

   Allieds WACC is 10%.

   Question 10

   What is the NPV of Project L?

   	b.	$18.78

QUESTION 12

1. What is the NPV of Project S?

   	a.	$19.98

QUESTION 13

1. What is the IRR of Project L?

   	a.	18.1%

QUESTION 14

1. What is the IRR of Project S?

   	b.	23.6%

QUESTION 15

1. What is the Payback period of Project L?

   	d.	1.6

QUESTION 16

1. What is the Payback period of Project S?

   	b.	2.4

QUESTION 17 (THIS IS THE QUESTION I NEED HELP ON)

1. If the WACC changes as you stated in the previous case, how would IRR and NPV be impacted? [Explain in about 3-4 sentences.]