Please Calculate the WACC, the discounted payback period, and the net present value for the following scenario. Show all work and clearly show how you came to your answers.

A municipal stadium owned by a city stadium authority is thinking about updating it's grass field to turf. New turf will cost $750,000. A local company has offered to give you $100,000 to put their logo on the turf, which you will happily take if you decide to go forward with the project.

In order to raise the remaining funds for the project, the stadium authority would issue $450,000 worth of bonds that pay 6% interest. They would borrow the remaining funds at a rate of 12.5%.

Your current leases on the field bring in $750,000 per year, but with the turf and the ability to host more events on the field, you project lease earnings of $975,000 per year. Assume the turf has a useful life of 6 years.