The initial financing of the project will be carried out as follows: 55% equity and 45% debt. The company paid $1.50 per share in the form of a dividend this year, which is likely to increase at a rate of 3% per year for the near future. The current price of the company's stock is $9.50 per share. The bank loan is likely to be arranged at an interest rate of 13.5% p.a. You are required to:

Compute the appropriate rate for discounting the cash flows of the project.
Compute the initial investment required.
Compute the earnings before taxes for years 1 through 7.
Compute the earnings after taxes for years 1 through 7.
Compute the Operating Cash Flow (OCF) for years 1 through 7.
Compute the Terminal cash flow.
Compute the Free Cash Flow (FCF) for years 1 through 7.
Compute the Net Present Value (NPV) and Internal Rate of Return (IRR).
Should the project be accepted?