The capital cost of a project implemented within a 12-month period is $150,000, which is financed by 80% debt at an interest rate of 8% per annum, plus the sponsors equity. The sponsors have access to other investment opportunities that can yield returns of 12% per annum. The net annual cash flow from the first five years of operations is as follows: $30,000.00, $35,000.00, $-24,000.00, $35,000.00, and $40,000.00. The residual value of the project after five years of operation is $50,000 and the corporate tax rate is 30%.

Calculate:

a. The Weighted Average Cost of Capital [4 marks]

b. The Net Present Value of the Project [8 marks]

c. The Modified Internal Rate of Return [8 marks]