ABC Corp. is a manufacturing company that produces industrial machinery. The company is

considering investing in a new project that requires an investment of $10$ million. The expected

cash flows from the project are as follows:

Year $1$: $3$ million

Year $2$: $4$ million

Year $3$: $5$ million

Year $4$: $6$ million

ABC Corp. currently has a cost of debt of $7\%$ and a cost of equity of $15\%.$ The company's capital

structure consists of $60\%$ debt and $40\%$ equity. The tax rate is $30\%.$

Questions:

$1.$ What is the net present value $($NPV$)$ of the project?

$2.$ What is the Weighted Average cost of capital $($WACC$)?$

$3.$ Should ABC Corp. invest in the project?