Please answer the following 4 questions.

Question A5 Discuss the following statement: We should never use the payback method to evaluate a long-term project. Question A6 You are provided with the following information about a 4-year project: Year 0 1 2 3 4 Nominal Cashflows ($) -50,000 14,000 18,000 21,000 24,000 The real discount rate for the project is estimated to be 12 percent and the inflation rate is expected to be 4 percent a year. Should you invest in this project? Question A7 Stock A has a standard deviation of 0.8 and a beta coefficient of 1.5; stock B has a standard deviation of 1.2 and a beta coefficient of 1.2; which stock has higher systemic risk? Why? Question A8 What is the impact of an increase in the corporate tax rate on WACC of firms with positive amounts of debt financing