What discount rate should Worldwide Paper Company (WPC) use to analyze those cash flows?

The assignment is to do the case study that is on the pdf attached- name of the case study is “Worldwide Paper Company” (page 249-251 of the book). Please read carefully to the instructions, Focus more on the numbers, analyzing the financial numbers, concepts, this is a Financial case study, and not a “marketing essay” were you just write a lot. Focus on the numbers and financial concepts. Do NOT use outside resources, use ONLY the information from the case. The report must follow this EXACT structure: the report should contain I. A Statement of the Problems or issues, II. The Alternatives Solutions available, III. An Analysis of the Alternatives (85% of the grade, so focus hard on this part), IV. Your Final Recommendations, and V. Appendix-containing spreadsheets, and other support for your analysis and final recommendations. All reports must be in the Following Format: I. Statement of the Problem- just state the problem, no background on the company and no summary of the case needed. 5 to 8 lines II. Alternative Solutions- put in bullet points, single sentences. Ex: “The company should issue bond.” III. Analysis of the Alternatives- go more in dept about the alternative solutions IV. Final Recommendations- My recommendation is that…Ex: …the company takes 10M in bond. Determine what is going to be the best for the company. V. Appendix- Add-on items of the case. Here is where you put the numbers (forecast, formulas, calculations). These are just some question to help get a good read understanding of the case, technically you do not have to answer to these questions, it’s just to help you: 1. What yearly cash flows are relevant for this investment decision? 2. What discount rate should Worldwide Paper Company (WPC) use to analyze those cash flows?3. What is the net present value (NPV) and internal rate of return (IRR) for the investment?