The Capital Corporation is planning to spend $1,000,000 on expansion. It's WACC is estimated at 13%. Operating cash flows for years 1-4 are estimated at $300,000, followed by $350,000 for the next 4 years.
a. Calculate the regular payback period.
b. Calculate the NPV.
c. What does the NPV mean?
d. Calculate the IRR.
e. What does the IRR mean?