TSMC is considering building a factory making 5-nanometer transistor chips in Arizona, U.S.

The estimated cash flows generated by the advanced chip plant would be $-2,500 in year 0, $800 in year 1, $950 in year 2, $1,000 in year 3, $550 in year 4, and $700 in year 5. All numbers are in thousand U.S. dollars.

TSMC now has a debt to equity ratio that equals 2:1. Its target debt to equity ratio is 1:4. Suppose TSMC does not have preferred stocks. Its corporate tax rate is 25%. Use the cost of equity and cost of debt calculated from (a) and (b), to compute WACC and MIRR. According to the MIRR method, do you think TSMC should invest in the new factory?