Please include how to calculate the math

1. What is the Illini Tap's weighted-average-cost-of-capital (WACC)? (10 pts.) 2. Calculate the NATCF series, and find the NPV of each investment using the WACC as the discount rate. (50 pts.) 3. Find the IRR of each investment. (10 pts.) 4. Find the MIRR of each investment using the WACC as the discount rate. (20 pts.) 5. Using the NPV as your decision criteria, which investment would you choose as the owner of the Illini Tap? What if you made the decision based on IRR or MIRR? (10 pts.) 6. Suppose that the microbrewery did NOT cause the decline in other sales and that serving food did NOT cause an increase in other sales, but everything else outlined in the information above is the same. Basically, ignore the information in the effects on other sales section. How would the NPV, IRR, and MIRR for the two investments compare? Note: You should not necessarily have to do any calculations for this question, you should be able to say something about the NPV, IRR, and MIRR for the two investments given the other information. (10 pts.) Question 1 WACC Calculations DIA EIA rdebt requity tax rate WACC 0.700 0.300 6% 30% 25% WACC Calculations DIA 0.700 EIA 0.300 rdebt 6% requity 30% tax rate 25% WACC 12.15% Loan Information Investment Down Payment Loan Amount $100,000 30% 70,000 rdebt term 6% 5 Question 2, 3, and 4 Microbrewery Other Cash Effects Loan Payment Loan Interest Taxable Income Year Inflows Depreciation Outflows NATCF (microbrew) Taxes 0 1 2 2 2 5 5 6 6 7 8 9 10 Year NATCF PV Factor PV PV outflows FV Factor FV inflows 0 1 2 4 5 b 8 9 10 NPV II IRR MIRR Kitchen Other Cash Effects Loan Payment Loan Interest Taxable Income NATCF (kitchen) Year Outflows Inflows Depreciation Taxes 0 1 2 3 4 5 6 7 8 9 10 Year NATCF PV Factor PV PV outflows FV Factor FV inflows 0 1 2 3 4 5 6 7 8 9 10 ON OOOO NPV IRR MIRR 1. What is the Illini Tap's weighted-average-cost-of-capital (WACC)? (10 pts.) 2. Calculate the NATCF series, and find the NPV of each investment using the WACC as the discount rate. (50 pts.) 3. Find the IRR of each investment. (10 pts.) 4. Find the MIRR of each investment using the WACC as the discount rate. (20 pts.) 5. Using the NPV as your decision criteria, which investment would you choose as the owner of the Illini Tap? What if you made the decision based on IRR or MIRR? (10 pts.) 6. Suppose that the microbrewery did NOT cause the decline in other sales and that serving food did NOT cause an increase in other sales, but everything else outlined in the information above is the same. Basically, ignore the information in the effects on other sales section. How would the NPV, IRR, and MIRR for the two investments compare? Note: You should not necessarily have to do any calculations for this question, you should be able to say something about the NPV, IRR, and MIRR for the two investments given the other information. (10 pts.) Question 1 WACC Calculations DIA EIA rdebt requity tax rate WACC 0.700 0.300 6% 30% 25% WACC Calculations DIA 0.700 EIA 0.300 rdebt 6% requity 30% tax rate 25% WACC 12.15% Loan Information Investment Down Payment Loan Amount $100,000 30% 70,000 rdebt term 6% 5 Question 2, 3, and 4 Microbrewery Other Cash Effects Loan Payment Loan Interest Taxable Income Year Inflows Depreciation Outflows NATCF (microbrew) Taxes 0 1 2 2 2 5 5 6 6 7 8 9 10 Year NATCF PV Factor PV PV outflows FV Factor FV inflows 0 1 2 4 5 b 8 9 10 NPV II IRR MIRR Kitchen Other Cash Effects Loan Payment Loan Interest Taxable Income NATCF (kitchen) Year Outflows Inflows Depreciation Taxes 0 1 2 3 4 5 6 7 8 9 10 Year NATCF PV Factor PV PV outflows FV Factor FV inflows 0 1 2 3 4 5 6 7 8 9 10 ON OOOO NPV IRR MIRR