This project will be financed with bothdebt and equity. The plan is to mirror the firm’s target capital structure byissuing 15 million shares of stock priced at $10.00 a share and $170mm face valueof 10-year bonds which will be priced at 94% of par if a coupon of 7% isoffered to investors. The company will pay dividends of $3.50 per year(starting in one year), and increase the dividend by 4% per year indefinitely.Treasury bills offer 4% return and the expected market returns are 12% peryear. The stock’s beta is 1.8. Assume flotation costs are 6% for debt and 18%for equity, and are incurred only for the $100mm outlay for fixed assets.Create an Excel template where all the necessary calculations are made.. What are the cash flows each yearfrom this project?What is the WACC?. What is the total initial cost afteradjusting for flotation costs?. What are the NPV, IRR, PI and simple(not discounted) payback period for the project?