(Answered) Palmer corp is considering a project which has the

Finance

Palmer Corp is considering a project which has the following incremental operating cash flows. If the firm WACC is 0.105;

Yr-0 Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
(4,545) 1,210 1,210 1,210 1,210 1,210

a. Should the firm pursue the project?

b. What is the impact on the firm's value(answer Must be quanitified).

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