1) The company can save $15,000 in energy costs each year for 5 years by adding a preheater to the steam generation unit. The cost of the heat exchanger is $40,000, and the cost of capital is 15%. What is the discounted payback period?

2) A food company has a debt-to-equity ratio of 1.5 according to their balance sheet. They have $45 million borrowed from Rockefeller Bank at a rate of 8%. The cost of equity is 14%. What is the WACC rate for the company?