Recently Tom, owner of Tom's Sports Stores, hired a consulting firm to explore the feasibility of Tom setting up an e-commerce web page and doing business over the internet. Although this expansion is more, risky, than his existing business, it is still potentially highly valuable. Tom is giving this opportunity serious consideration. As the financing for this project is in line with Tom's target capital structure, the consultants used a WACC analysis to value the e-commerce expansion. Using free cash flows and Tom's WAAC, the project is NPV positive, but rather marginally. The consultants also re-verified the forecasts. Based on the positive NPV, the consultants recommend Tom go ahead and start doing business over the internet. Just considering the information given above: Do you agree with the consultant's analysis? Circle your answer: Yes No. Given your answer to Part a, is the resulting value of the e-commerce web site over-valued (NPV is too high), fair-valued (NPV is right-on), or undervalued (NPV is too low)? Answer "Over-valued, " "Fair-valued, " or "Under-valued" and then explain your answer Given your answer to Part b, do you think the resulting valuation supports the recommendation to set up an e-commerce web page? If so, why? If not, why not? Reminder: You are to make your decision based on the goal of finance, not on your personal preference