Question $2(10$ points$)$

Beta Corporation is considering the purchase of the linerboard mill and corrugated box plants of Royal Paper

for a total price of $$250$ million. The estimated incremental free cash flows if Beta Corp acquired the

facilities can be constructed based on the information presented in the table below. Beta Corp's marginal tax

rate is $35\%$ and their after$-$tax cost of capital is $12\%.$

Calculate the NPV$,$ IRR, and payback period for the acquisition and indicate what you think Beta Corp.

should do$.$