The following information relates to a new capital budgeting for a project. 600,000 will be invested in fixed assets. This investment takes place at the end of the year that precedes the year in which the project starts. Equal amounts will be depreciated annually, which is as much as 20% of the purchase price of these fixed assets. The project duration is four years. The residual value of the fixed assets is 120,000. This residual value fully accounts for the disinvestment in year 4. The expected turnover (sales) in each of the project years is 250,000. Yearly operating costs (excluding depreciation) are estimated to be 75,000. These operating costs are paid for in the year they are incurred. The tax rate is 25%. The investments in fixed and current assets are to be made at the end of the preceding year. 1. Calculate the cash flows in this project from year o to year 4 2. Draw the cumulative cash flows of this project in a graph, assuming that the cash flows are spread evenly over the year 3. Based on the information in the graph from question 2, how long will it take to recoup the original investment in this project? 4. Calculate the NPV for this project, using a weighted average cost of capital (WACC) of 13% 5. What is the maximum WACC that would make this project worthy of further consideration