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The NPV should be $1496.56 and IRR is 16.19, can you please calculate the rest and show your calculations? For all of them: NPV Payback

The NPV should be $1496.56 and IRR is 16.19, can you please calculate the rest and show your calculations? For all of them:

NPV

Payback

Discounted Payback

IRR

PI

Firm-wide WACC

Time

0

1

2

3

4

5

Cash Flow

-$221,500

-$94,100

$135,425

$68,000

$204,000

$99,225

The required rate of return for this project is 16%

Maximum allowable payback and discount payback statistics for the firm are 3 and 4 years, respectively

The firm has a capital structure of 75% equity, 5% preferred stock, and 20% debt

The firm's before-tax cost of equity is 17.5%, its cost of preferred stock is 12%, and its cost of debt is 15%

The firm's debt interest is fully tax deductible

The firm's tax rate is the standard corporate tax rate

Based on the above information, calculate the following capital budgeting decision methods

NPV

Payback

Discounted Payback

IRR

PI

Firm-wide WACC

Evaluate this project for each capital budgeting decision method to determine if the project should be accepted or rejected (note: determine the feasibility of the project for EACH method)

Make a final project acceptance or rejection proposal using key finance concepts from the course to support your proposal*

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