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Please answer only the fifth question IBL PROJECT...

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Accounting

Please answer only the fifth question image
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IBL PROJECT Company X has to consider the IBL project that can increase the value of the company overall. The company pays 18% tax. The company will also receive an interest return on the additional fund that will be invested and receive income of $3400. The salvage value of the CAPEX is $13000 and after the project the company can sell the asset for $7000. Project A CAPEX $26,700 $2700 $2750 Rent expense Supplies expense Prepaid expense Utilities expense Insurance expense $1500 $1800 $500 Unearned Revenue $3200 Gas Expense $520 Project period 5 years Sales $10,500 Discount rate table 3% GDP Risk free 6% 2.5% Risk premium Interest Rate 8% REQUIRED 1. Calculate the initial investment, After tax cash flow and terminal value of the project. 2. Calculate the discounted payback period of the project 3. Estimate the NPV and Pl of the project 4. What is the IRR of the project ? Project B's results are given on the table below DPBP 3 years NPV + 2200 PI 1.20 IRR 15% Payback Period 2.8 years 5. Considering project B which one is the best and why

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