As a CFO of WAVC Limited, you have prepared its balance sheet as on 31 March 2021. as per the accounting principles, as follows (Rupees in 2000s): Cash Net Current assets Fixed assets Total assets 500 Equity capital 8500 Preference capital 1000 Long term loans 10000 Total Liabilities 2000 1000 7000 10000 Preference shares are entitled to a dividend of 10% while the coupon rate on the loans is 9% Both these instruments, assumed to be perpetual. are being traded at 10% discount to their respective face values. Equity shares which are being traded at par may be assumed to cost 14%. You are making large investments which will generate returns over a period of time. At what rate will you calculate the NPV of these returns assuming the income tax @30% in each of the following cases? (a) Assuming no floatation cost. (b) Assuming an average floatation cost of 7% (use the interior method?), 6] 6