6. JoJo Company is considering adding bikes to their gift shop. The company estimates that the cost for the project is $18,000. Sales are expected to produce net cash inflows of $2,000 in first year, $3,000 in 2 nd year, $4,000 in 3rd year, $5,000 in 4 th year and $5,550 in 5th year. Calculate Payback period, and explain whether the company should add bikes to their store if they assign a 4 years' maximum (desired) payback period to this project? lodule 5, Cost of Capital 1. The current market price of stock is SR 200, and the stock pays an expected dividend of SR8 with a growth rate of 5%. Determine the cost of common equity. 2. A firm borrows money at 15% interest after taxes and pays 10% for equity. The company raises capital in equal proportions, i.e., 70% debt and 30% equity. Determine the Weightage Average Cost of Capital (WACC) of the Firm. 3. Determine the cost for a preferred stock that pays annual dividend SR 6, has issue price SR 40 , and incurs flotation costs of SR 3 per share