Sunny Inc. is trying to decide whether investing in Project A is a good idea. This project will last 5 years and will not exist after that. Any salvage value will be considered as an additional cash flow to be added to the 5 year's free cash flow. The project requires a $1,000,000 initial investment (today) and has the following projected free cash flows. The project is expected to have a salvage value of $200,000 (at the end of 5th year) Sunny Inc provides the additional information: D/E ratio: 0.7 Tax Rate: 20% Most recent bond with a face value of $1000 sold for $950. This bond pays yearly coupon payments, and the coupon rate is 6%. The bond has a remaining maturity of 15 years. The beta for Sunny Inc. is 2 . The S\&P 500 has an expected return of 12% and the T-bill is 3%. Please answer the following questions in a word document and upload to Canvas. Q1) Calculate NPV (remember to include the salvage value as part of the 5 year's cash flow) Q2) Calculate IRR Q3) Is this a good investment for Sunny Inc.? Why or why not? Q4) Calculate Cost of Equity using the CAPM method