Question 3. "What is the NPV using the WACC rate?" is the question I need help with using the following information

Payback Table View Table 1 - Data Cost of new equipment (at year 0) 191.10 million Corporate income tax rate - Federal 26.0% Corporate income tax rate - State of Maryland 8.0% Discount rate for the project using WACC 13.86% Loan Amount 171.99 million Loan Interest rate (Prime + 2) 5.25% Table 2 - After-tax Cash Flow Table (all figures in $ millions) Year Projected Cash Inflows from Operations Projected Cash Outflows from Operations Depreciation Expense Interest Expense Projected Taxable Income Projected Federal Income Taxes Projected State Income Taxes Projected After-tax Cash Flows PV NPV1 IRR NPV2 Excel function to use : SLN IPMT PV NPV IRR NPV 0 ($191.10) ($191.10) 1 $850.0 $840.0 $23.89 $9.03 ($22.92) ($5.96) ($1.83) $8.76 $7.70 $8.34 2 $900.0 $810.0 $23.89 $8.09 $58.02 $15.09 $4.64 $62.18 $47.97 $56.38 3 $990.0 $870.0 $23.89 $7.11 $89.01 $23.14 $7.12 $82.63 $55.98 $71.34 4 $1,005.0 $900.0 $23.89 $6.07 $75.04 $19.51 $6.00 $73.42 $43.69 $60.35 5 $1,200.0 $1,100.0 $23.89 $4.98 $71.14 $18.50 $5.69 $70.84 $37.02 $55.45 6 $1,300.0 $1,150.0 $23.89 $3.83 $122.29 $31.79 $9.78 $104.60 $48.01 $77.96 7 $1,350.0 $1,300.0 $23.89 $2.61 $23.50 $6.11 $1.88 $39.40 $15.88 $27.96 8 $1,320.0 $1,300.0 $23.89 $1.34 ($5.23) ($1.36) ($0.42) $20.44 $7.24 $13.81 PV $263.48 NPV1 - calculated NPV including interest expense NPV $72.38 $180.50 NPV2 - calculated NPV from Project 4 at the lower discount rate of 5.02% IRR 23.35% Payback Timeline View Example of Actual Cash Flows 0 1 2 3 4 5 6 7 8 | | | | | | | | | Cash Flow ($191.10) $8.76 $62.18 $82.63 $73.42 $70.84 $104.60 $39.40 $20.44 $271.17 Cummulative Cash Flow ($191.10) ($182.34) ($120.16) ($37.53) $35.89 $106.73 $211.33 $250.73 $271.17 Payback Period 3 years 6 months 0 1 2 3 4 5 6 7 8 PV | | | | | | | | | ($191.10) Discounted Cash Flow (DCF) ($191.10) $7.70 $47.97 $55.98 $43.69 $37.02 $48.01 $15.88 $7.24 $263.48 $72.38 Cummulative DCF ($191.10) ($183.40) ($135.44) ($79.46) ($35.77) $1.25 $49.26 $65.14 $72.38 Payback Period 4 years 12 months ANSWER THESE QUESTIONS: 1. What is the total depreciation for tax purposes? $191.10 2. What is the total PV of the Cash Flows using the WACC rate? $263.48 3. What is the NPV using the WACC rate? 4. What is the NPV using the alternative rate? $180.50 5. What is the IRR? 23.35% 6. What is the payback period using the DCF?