QUESTION 2 Your uncle is a proud owner of an up-market clothing store. Business is down...

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QUESTION 2 Your uncle is a proud owner of an up-market clothing store. Business is down and he is considering replacing the languishing tie department with a new sportswear department and make sales both in store and online. To examine the profitability of such a move he has come to you because he knew you took a finance class while at Texas Tech. The cost to make this change has been estimated to be $256,000. Your uncle's cost of capital is 9%. After 6 months if research and hard work, the estimated for the next 5 years is: Year 1 Profit $36,000 2 $60,000 3 $55,000 $65,000 $125,000 4 5 OA. This project should be rejected by your uncle OB. This project would add value to your uncle's clothing store C. Need more information in order to make a decision OD. This project should be accepted because the IRR is greater than the cost of capital QUESTION 2 Your uncle is a proud owner of an up-market clothing store. Business is down and he is considering replacing the languishing tie department with a new sportswear department and make sales both in store and online. To examine the profitability of such a move he has come to you because he knew you took a finance class while at Texas Tech. The cost to make this change has been estimated to be $256,000. Your uncle's cost of capital is 9%. After 6 months if research and hard work, the estimated for the next 5 years is: Year 1 Profit $36,000 2 $60,000 3 $55,000 $65,000 $125,000 4 5 OA. This project should be rejected by your uncle OB. This project would add value to your uncle's clothing store C. Need more information in order to make a decision OD. This project should be accepted because the IRR is greater than the cost of capital