Using the following data: (Pleae prove answers in excel spreadship & show calculations)

Initial Investment = $10,000,000

Cash Inflow Year 1 = $3,000,000

Cash Inflow Year 2 = $3,500,000

Cash Inflow Year 3 = $4,000,000

Cash Inflow Year 4 = $4,900,000

Cash Inflow Year 5 = $5,000,000

a. Calculate Internal Rate of Return b. Calculate Net Present Value (assuming a required return of 8%)

2). Using the following data:

Debt o Market value - $7,000,000 o Current yield to maturity 8%

Equity o Market value - $35,000,000

Tax rate 35%

Expected return on market 10%

Current 10 year US Treasury 2.3%

Beta 1.60 Calculate weighted average cost of capital

3). Using the following free cash flow data:

Year Cash Flow 2017 $4,000,000

Year Cash Flow 2018 $4,400,000

a. Prepare a 10-year cash flow forecast based upon the rate of growth in cash flow between 2017 and 2018.

b. Calculate the net present value of the forecasted cash flows assuming an immediate investment cost of $18,500,000

4. Estimate cost of capital using the following data:

Market value of debt - $600,000

Market value of equity - $1, 400,000

Current yield on debt 7.3%

Tax rate 35%

Expected market return 12%

Current 10 year US Treasury 3.8%

Beta 2.1