QUESTIONS 1 . What is Foster's Year O net investment outlay on this project ? 2. Estimate the product's operating cash flows inclusive of cannibalization effects . 3 . What are the terminal non - operating cash flows of the project when the project is terminated at Year 4 ?) 4 . .What are the project's NPV . IRR modified IRR. ( MIRR ) , and payback ?" Should the project be undertaken ? [ Remember : The MIRR is found in* three steps : ( 1 ) compound all cash inflows out to the terminal year at the cost of capital . ( 2 ) summ the compounded cash inflows to obtain the terminal value of the inflows , and ( 3 ) find the discount rate that forces* the present value of the terminal value to Equal the present value of the net Investment outlays . This discount rate is defined as the MIRR. ] 5 . . What recommendation should Jennifer and Michael make to the Executive committee ? Should they recommend that the project be* accepted , rejected , or studied Further ?" Justify Your