Please Answer All the parts.

Question 1 You are a finance student at CBS who is betting that the Football World Cup will have its start in Copenhagen in the summer of 2024. You expect that the focus on Copenhagen will attract tourist for the following years. You plan to quit your studies and commit yourself full time to starting a t-shirt business which is going to make t-shirts with the text: I love Football. You expect that you will be able to sell 6,000 next year and the year after (i.e. years 1 and 2 of the project) and 3,000 in the year after that (year 3), after which you will close the project. You will sell the t-shirts at DKK 40 a piece, and they will cost you DKK 20 to produce per t-shirt. To get the business going you will have to make an investment in office supplies of DKK 20,000 today (year 0) which will depreciate in a straight line to DKK 3,000 over the 3 years. The office supplies will be worthless by the end of the project. Further, you will have to make a one-time investment of DKK 40,000 in working capital at the beginning of the project, which will be retrieved by the end of the project. Assume the tax rate is 15%. What is the project's free cash flows in each of the 4 years (0, 1, 2 and 3)? You plan to finance your company by issuing equity. The current risk-free rate is 3%, the market risk premium is 6% and the beta of your company's stock is 1.5. b. What is your company's WACC? c. What is the NPV of the project? d. What is the dynamic payback period of the project? a