Your company is considering a new project that will an initial investment in buying a production line of $250,000 and the production line will last for four years. Assume that the production line will be depreciated straight line to a salvage value of $10,000 at the end of year 4. However, the new project does not require investment in research and development (R&D). The new project will generate sales revenue of $120,000 each year and the annual COGS will be 30% of sales. The project will require $20,000 in net working capital (NWC) upfront (year 0), which will be fully recovered at the end of year 4. Our company also needs to attribute $30,000 of selling, general and administrative expenses to the project at the end of each year. Suppose your company is a levered company. It has 70 million common shares outstanding trading for $10 per share. It also has $140 million in outstanding debt. The debt cost of capital is 8%, and the corporate tax rate is 30%. Suppose that your firm's stock has a beta of 0.85. If the risk-free interest rate is 4% and the expected return from the S&P 500 market index is 12%. 1. Calculate your company's WACC. 2. Calculate this project's free cash flows (FCFS) 3. Suppose this project is an average-risk project. Calculate the NPV of this project. 4. Calculate the IRR of this project. 5. Calculate the payback period of this project