Project Telescope would be a major undertaking for Xenophobic. It would require an initial investment of $$10,000$ and would last for about $6$ years. The assets from the project would be sold at the end of year $6$ for $$7,000.$ A table showing the revenues, the

initial investment, and the sale of assets at the end is shown. You must determine the cash flows for the $6$ years of the project Using the WACC calculated above, discount the cash flows to determine the NPV$.$ You can also use the Excel IRR function to determine the Internal Rate of Return. But the important question is: Would you recommend this investment?

$\backslash$table$[[$Project Telescope Cash Flow Projections,$],[,$Capital,Revenues,COGS $(60\%),$Operating Margin,Fixed Costs,Net Cash Flow,Present Values$],[,$Investments,,,,,,$],[$Initial Investment,$-10,000,,,,800,,],[$Year $1,,2,000,,,800,,],[$Year $2,,2,200,,,800,,],[$Year $3,,2,400,,,800,,],[$Year $4,,1,600,,,800,,],[$Year $5,,2,700,,,,,],[$Year $6,,3,000,,,,,],[$Sale of Assets,$7,000,,,,,,],[$NPV$,,,,,,,],[$IRR$,,,,,,,]$

Beta$=1\mathrm{.}5$

WAAC$=13\mathrm{.}13\%$