hesitate in proceeding with the project. Explain what is wrong with this reasoning. (Do not bother to replicate his calculations.) c.) An even more caffeinated divisional executive of the chain calls you a few minutes later and says that she also found that the NPV of the project is highly positive. She says that she discounted zoos- 2011 free cash ows from the rm as a whole including the ows from the new project and that this value was highly positive. Therefore she insists that they should immediately proceed with the project. Explain what is wrong with this reasoning. {Do not bother to replicate her calculations.) d.) Calculate the incremental free cash ow for each of the years 200mm 1 that would result from adopting the project. e.) After seeing your projections of incremental cash ows for the years 2006-2111 1, the CEO of the chain calls you and says that he is worried that the divisional executives have been ignoring some cash ows that are related to this project. In particular. he knows that they hired marketing researchers and paid them $10 million in January 2006 for a study on the elasticity of consumer demand with respect to espresso drink waiting times. Therefore he argues that an additional $1t] million charge should be subtracted in MG, at very least to make sure the divisional executives realize the costs they are imposing on the company. Evaluate this argument. f.) Is there a discount rate at which the NP'litr of this project's cash flows would be exactly (or almost exactly} zero? {IRE}