Please consider the following information for the next 4 questions. Biogen Inc. is considering a capital expansion project. The initial investment of undertaking this project is $238,200. This expansion project will last for five years. The net operating cash flows from the expansion project at the end of year 1,2,3,4 and 5 are estimated to be $42,350,$47,024,$94,752,$82,512 and $120,456 respectively. Biogen has a weighted average cost of capital of 28%. Based on Biogen's weighted average cost of capital, what is the NPV of undertaking this expansion project? That is, what is the NPV if the weighted average cost of capital is used as the discount rate? Shall Biogen undertake the investment project? NPV=$29,778.80. Biogen shall undertake the investment project since NPV>0. NPV=$51,122.02. Biogen shall not undertake the investment project since NPV0. Based on Biogen's weighted average cost of capital, what is the profitability index (PI)of undertaking this project? That is, what is the profitability index if the weighted average cost of capital is used as the discount rate? Shall Biogen undertake the investment project? PI=1.63. Biogen shall undertake the investment project since PI>1. PI=0.79. Biogen shall not undertake the investment project since PI1. What is the internal rate of return (IRR) if Biogen undertakes this project? Based on the IRR, shall Biogen undertake this investment project assuming the weighted average cost of capital is the appropriate discount rate for the capital budgeting problems considered. IRR=22.47\%. Biogen shall not undertake the investment project since IRR=29.82%. Biogen shall undertake the investment project since IRR>WACC. IRR=15.53\%. Biogen shall not undertake the investment project since IRR WACC. What is the modified internal rate of return if Biogen undertakes this project? Assuming that the positive cash inflow from undertaking this project will be reinvested at the weighted average cost of capital. 20.04% 22.82% 27.16% 24.63%