1. What is the Internal Rate of Return on the project?

2. What is the Net Present Value of the project if the required rate of return (Weighted Average

Cost of Capital) is equal to 3.8 percent?

3. By how much would the Net Present Value of the project change if unit sales were 30 per

cent less than expected (round down toward zero the number of units; the WACC is still

3.8%)?