STOCK BETA = 1.83 Expected Rate of Return = 4.48% / Weighted Average Cost of Capital = 4.38%

Land for a factory will cost $410,000. The factory will cost $2,830,000 to build and construction will take two years with construction costs payable in equal installments at the start of each year. The factory will operate for 20 years. At the end of its 20 year lifespan, the land will be resold for $30,000. There is a 70% probability that the factory's net operating cash flows will be $430,410; however, there is a 30% chance that net cash flow will only be $196,107. You may assume that net operating cash flows are received at the end of each year. A. What are the expected net operating cash flows per year? (Round to 2 decimals) B. What is the internal rate of return for the project? (One, one-hundredth of a percent)| C. Net present value of the project? (2 Decimal Places) D. Should the job be recommended to proceed? Yes or No?