6 For this case report, you will work individually. The main body of the report must be no shorter than 10 pages and no longer than 20 pages, single spaced. The main body should comprise: 1. Executive Summary - Identify the key problem and summarize the key issues in 1-5 sentences; 2. Introduction/Background information - include relevant facts and issues on company. Competitors, industry 3. Financial Analyses - Assume that you are Joan Hamilton. Provide answers based on both qualitative and quantitative analyses to the following: 1. Calculate VEC's WACC using the data in Exhibit 1. 2. Calculate the project's cash flows using the data in Exhibit 3. Why is it important to take into account the effect of inflation in forecasting the cash flows? Briefly comment. 4. Evaluate the profitability of the project with the NPV, IRR, MIRR, simple payback period, and discounted payback period methods. Is the project acceptable? Briefly explain. Why is the NPV method superior to the other methods of capital budgeting? Brie