Determine the feasibility of the project for each method

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Reference no: EM133432329

The NPV should be $1496.56 and IRR is 16.19, can you please calculate the rest and show your calculations? For all of them:

NPV

Payback
Discounted Payback
IRR
PI
Firm-wide WACC

Time	0	1	2	3	4	5
Cash Flow	-$221,500	-$94,100	$135,425	$68,000	$204,000	$99,225

The required rate of return for this project is 16%
Maximum allowable payback and discount payback statistics for the firm are 3 and 4 years, respectively
The firm has a capital structure of 75% equity, 5% preferred stock, and 20% debt
The firm's before-tax cost of equity is 17.5%, its cost of preferred stock is 12%, and its cost of debt is 15%
The firm's debt interest is fully tax deductible
The firm's tax rate is the standard corporate tax rate
Based on the above information, calculate the following capital budgeting decision methods
- NPV
- Payback
- Discounted Payback
- IRR
- PI
- Firm-wide WACC
Evaluate this project for each capital budgeting decision method to determine if the project should be accepted or rejected (note: determine the feasibility of the project for EACH method)
Make a final project acceptance or rejection proposal using key finance concepts from the course to support your proposal*

Reference no: EM133432329

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