58. (LO 13.2) GiS Inc. has the following four projects on hand: Note the cash flow in the table is accumulative. Assume that RF=5 percent, ERM=12 percent, firm beta =1.2, after-tax cost of debt =6.5 percent. The firm is financed by 40 -percent debt and 6 percent equity. Projects 1,2 , and 3 have the same capital structure as the firm, while project 4 has a 1-percent risk premium. Calculate the cost of capital for the four projects using the following methods: a. The payback period for projects 1,2 , and 3 : If the cut-off period for screening projects 1 and 2 is 3.5 years and for project 3 is 2.25 years, which project(s) should be rejected? b. The discounted payback period method for project 4 : If the cut-off period for screening project 4 is 3.25 years, should it be accepted? 58. (LO 13.2) GiS Inc. has the following four projects on hand: Note the cash flow in the table is accumulative. Assume that RF=5 percent, ERM=12 percent, firm beta =1.2, after-tax cost of debt =6.5 percent. The firm is financed by 40 -percent debt and 6 percent equity. Projects 1,2 , and 3 have the same capital structure as the firm, while project 4 has a 1-percent risk premium. Calculate the cost of capital for the four projects using the following methods: a. The payback period for projects 1,2 , and 3 : If the cut-off period for screening projects 1 and 2 is 3.5 years and for project 3 is 2.25 years, which project(s) should be rejected? b. The discounted payback period method for project 4 : If the cut-off period for screening project 4 is 3.25 years, should it be accepted