2:13 .nl 4G Done TASK-2 ACCT289 Strategic C... Continuing illustration 19, it the firm has 18,000 equity shares of $100 cach outstanding and the current market price is $300 per share. The cost of issuing shares is 12%. The market values and book values of the debt is $1500000 with the cost of debt 5% and preference capital is $1200000 with cost of acquiring 10% 1. What is the total capital of this company with proportions of each capital component in total capital structure (percentage)? (1 Marks) 2 Calculate the market value weighted average cost of capital (WACC). (4 Marks) Question No. 3 (15 Marks) Atlas Engineering is planning to install new machinery in their manufacturing division. The total investment budget is S120000. Atlas Engineering is reviewing three machinery that will generate three different cash inflow with the similar investment. For comparison and optimal capital budgeting decision, company require to analyze three project options with the following cash inflows. Yeart Project Project Inflow aflew allow 1 $29,964 $31.970 S877 2 33.950 537.156 549,753 30,000 $33.560 $36,720 # 17,000 $19.149 50 $15.672 517.299 $18.306 6 15.672 517.239 58. 7 15.672 (517.239518.86 5 13.36 $14.916 $16.272 11,400 $12.54 $13.680 10 11.400 $12.50 513/30 you are required to use Net Present Value (NPV) technique to compare three projects for Atlas Engineering capital budgeting and finally advise them to select or reject any one project among them. Rate of return assume to be 12% annually Further give clear decision on what bases project is accepted and others are rejected