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First five years of a business:Cost of Capital 8.00%Initial Investment $(40,000)Year 1 Cash Flows 8,000Year 2 Cash Flows 9,200Year 3 Cash Flows 10,000Year 4 Cash Flows 12,000Year 5 Cash Flows 14,500Calculate the net present value (NPV), internal rate of return(IRR) and payback period.Assume you can sell the business in year 5 for 10x’s annual cashflow. Calculate the net present value (NPV) and internal rate ofreturn (IRR).Suppose the cost of capital is 12% instead of 8%.....What are the net present value (NPV) and internal rate of return(IRR) for the initial cash flow numbers with the new cost ofcapital?Now, assume you can sell the business in year 5 for 10x’s annualearnings. What are the net present value (NPV) and internal rate ofreturn (IRR) with the new cost of capital?