please answer question 4. I am also including questins 2 and 3 because it refrences them.

Question 4 (Marks) Refer to Questions 2 and 3. The land for the factory will cost $1,080,000 The factory will cost $1,070,000 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 $700,000 There is a 70% probability that the factory's net operating cash flows will be $254,556 : however, there is a 30% chance that net cash flows will only be To $85,469 . 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 hundroth of a percent) 2) What is the Net Present Value of the project? Mari Round your answer to 2 decimal places) d) Should Anna recommend that the J Corporation build the factory? (2 Mans Enter Answer 14 Enter Answer Enter Answer 19 Yes No Check only one box Compte our buch work in the space blow Encor your Fra Arvore 25 26 Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering a 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 1.4% and the market risk-premium is 3.0%. Enter Answer Enter Answer Enter your Final Answer Here a) What is the beta of J Corp.'s stock? (1 Mark)(Round your answer to two decimal places) b) Using the CAPM model, what is the expected rate of return on J Corp. stock for the coming year? (2 Marks Round your answer to one one-hundreth of a percent) J Corp. Market Return Return Year (%) (%) 1 -5.94 -7.80 2 8.32 10.02 3 10.12 12.27 4 5.32 6.27 5 -11.94 -15.30 6 12.86 15.70 7 7.66 9.20 8 10.75 13.06 9 8.94 10.80 10 9.12 11.02 11 -3.68 -4.98 12 -5.54 -7.30 Complete your rough work in the space below + 4 6 1 Question 3 (3 Marks) 2. Refer to Question 2. Now that Anna has determined an appropriate rate 3 of return for J Corp.'s stock, she must calculate the firm's Weighted Average Cost of Capital (WACC). There are currently 56.0 Million 5 J Corp. common shares outstanding. Each share is currently priced at $17.88 . As well, the firm has 2,000 bonds outstanding and each bond has a face value of $10,000, a yield to maturity of 3.02% and a 8 quoted price of $10,302.70 . J Corp.'s tax rate is 30%. J Corp. has no preferred shares outstanding. 11 What is J Corp.'s WACC? Enter Answer 12 (Round your answer to one one-hundredth of a percent) Enter your Final Answer Here 14 Complete your rough work in the space below 7 9 10 13 15