Question15 A firm is considering a 4-year investment that requires an initial outlay of 120000. The expected net cash inflows are:[table] Year | Cash Flow 1 | 30,000 2 | X 3 | 40,000 4 | 45,000 [/table]The project’s internal rate of return (IRR) is 11%. To evaluate the project, the firm first calculates its base cost of capital using WACC, then adjusts it upward for project-specific risk. Capital structure and assumptions:Target capital structure: 70% equity, 30% debt Cost of equity: 10% Pre-tax cost of debt: 5% Corporate tax rate: 25% The project is riskier than average, so the firm adds a +2% risk premium to the base WACC Note: Enter all answers as numbers rounded to two decimal places. Do not use commas in your answers (e.g., write 1500 instead of 1,500). a) Calculate the project’s cost of capital. [input] %b) Using the information provided, calculate the missing Year 2 cash flow (X). $[input] (Please round to the nearest dollar)c) The project should be [select: , rejected, accepted] ResetMaximum marks: 3 Flag question undefined [select: , rejected, accepted]Multiple dropdown selections