The Juniper Network Company is considering a new 5:year expansion project that requires an initial fuxed investment of $2.5 million. The fixed asset will be depreciated straight line to zero over its five year tax life, after which time it will be worthless. The applicable tax rate is 22%. Estimated annual sales for the project are $2.2 million with annual costs of $1.15mm. The project will also require an initial investment in NWC of $140,000. Which of the following approaches can be used to analyze the project? 1. NPV 2. IRR 3. Payback period 4. Immunization 5. Arbitrage Portfolio theory is correct