#4 please show your work

(4) Company BW has 50,000 shares outstanding and the market price is $23 per share. People believe this company is twice as risky as the stock market. Current T-bill rate is 3% and expected stock market return this year is 9%. What is BW's annual cost of equity? [15 points] (5) Find the overall (annual) cost of capital for BW (WACC). [20 points] I (6) Company BW has the following two investment opportunities (A and B). a) Which project is better, according to NPV? [15 points] b) Which project is better, according to Modified IRR? [15 points] ***Let's not to consider the difference in the duration of these projects* Net Cash Flows End of Year Project A Project B 0 -8.000 -6,000 1 500 2,500 11,500 3,500 3 3,500 3.000 2 4