Your company is evaluating a power plant project. Currently leased to the state with an annual lease of $ 150,000 The cost of building a power plant from scratch on a land is $ 3.75 million. Power plant with straight line method it will be costed and sold for a scrap value of 125,000 at the end of its ten-year economic life. The power plant is expected to increase your company's first year profit by $ 500,000. Costing your company $ 150,000 market study predicted that this profit will increase by 20% per year. Realization of the project. requires an increase of 500,000 in capital. Half of this investment is at the end of the fifth year of the project, the other half will be recovered when the project is terminated and the plant equipment is sold for scrap. The project will have a side effect of annoying government officials who are using the land for their own purposes. In contrast, a government project that would generate a pretax profit of $ 60,000 a year for five years would be canceled. expected. The corporate tax rate to which the company is subject is 35%, and the capital opportunity cost is 20%. a) Identify the free cash flows of the project under main headings and show them in a table. b) Calculate the payback period, net present value and internal rate of return of the project.