Please explain.

AutoSave O OFF A 9 9 9 . C ... Final Exam Excel Review Home Insert Draw Page Layout Formulas Data Review View ? Tell me Calibri (Body) 11 A A ae Wrap Text General Paste BIU HV MAV Merge & Center $ ~ % 9 Conditional Fo Formatting as Clipboard Font Alignment Number Sty E20 + XV fx B E G H M 1 2 3 ACME Commercial Real Estate is thinking of purchasing an office building in Austin Texas. ACME is a publicly traded company that has a Market Capitalization of 225,000,000 and Debt of 120,000,000. 4 ACME's interest expense per year is 5,300,000 and ACME's corporate tax rate is 25%. ACME's cost of equity is 7.8% as calculated from the CAPM formula. 5 What is ACME's WACC? 8 9 The office building is 28,000,000 and ACME believes that the office building can be sold conservatively for 38,000,000 after 10 years. 10 Meanwhile, they project the building's cash flow of the next 10 years are as follows. 11 12 Year 13 10 14 1,300,000.00 1,380,000.00 1,550,000.00 1,790,000.00 1,970,000.00 2,080,000.00 2,130,000.90 2,240,000.00 2,300,000.00 2,390,000.00 15 16 What is the NPV of this investment 17 18 19 What is the IRR of this investment 20 21 22 23 24 25 26 27 28 29 30 + 34 35 36 37 38 39 DCF Bond Price Bond Yield Bond Yield Dates NPV IRR Ready +