A developer is pursuing a project with the following:

Capital cost of project : $100,000.00	Funding from lenders: 80%
Initial working Capital: $5000.00	Interest rate on loan: 10%
Economic life of project: 5 years	Reinvestment rate: 15%
Residual Value (year 6) : $20,000.00	Tax rate: 30%

	Y1	Y2	Y3	Y4	Y5
Net cash flow	25000.00	30000.00	(-16000.00)	35000.00	40000.00

Calculate:

a. Weighted average Cost of Capital

b. The net present value of the project

c. The moified IRR d Plot the NPV Profile and determine the IRR