You are the General Manager at the Bicker, Slaughter, and Lynch Law Firm. There is an opportunity tobuy out a small law firm that was just started by a young MBA/JD, and you believe the firm can be grownand become a lucrative part of your Firm.With help from your finance leader, you have estimated the following benefit streams for this new division:You estimate that the purchase price for this firm would be $200,000 and that additional net workingcapital would be needed in the amount of $60,000 in year 0, an additional $20,000 in year 2 and then$20,000 in year 5.BSL usually spend about $275,000 per year in advertising. If you make this acquisition, you would askthat advertising spending be increased by an incremental one-time amount of $50,000 in year 0 topublicize the firm?s expansion.Your finance leader has indicated that the firm has access to a credit line and could borrow the funds at arate of 6%. He also mentions that when he runs project economics for capital budgeting (such as a newcopier or a company car), he recommends a standard 10% rate discount, but the one other time theylooked at an acquisition of a smaller firm, he used a 12% rate discount. Obviously you will want to selectthe most appropriate discount rate for this type of project.At the end of 8 years, the plan will be to sell this division. The estimated terminal value (the sale and thereturn of working capital) is conservatively estimated to be $300,000 of after-tax cash flow help.Using the data that you need (and ignoring the extraneous information), calculate the Nominal Payback,the Discounted Payback, the Net Present Value, and the IRR for this potential acquisition.