Broadside Sinking Sydney Limited is a company that manufactures luxury sinking yachts. The company maintains a capital cost structure of 353530 for common equity, preferred equity, and debt. The cost of common equity shares is 1/% preferred equity shares is 0%, and debt 12%. The tax rate is 30% The company is approaching the ed of its financial year, and the board of directors are seeking to decide on the capital budget for the forthcoming year, and the capital expenditure items the company may invest into The chief financial officer (CFO) has presented the board with the following list of three major capital expenditure projects for consideration with the initial outlay and projected annual after-tax cash flows for each project. Project A Project M Project U Initial Outlay $43,000,000.00 $71,000,000.00 $79,000,000.00 Life of Project 3 Years 5 Years 4 Years Annual After-Tax Cash Flow Year 1 526,000,000.00 $21,000,000.00 529,000,000.00 Year 2 521,000,000.00 $26,000,000.00 $28,000,000.00 Year $16,000,000.00 $29,000,000.00 526,000,000.00 Year 4 $27,000,000.00 $34,000,000.00 Years $32.000.000.00 Required: 1. Calculate the weighted average cost of capital of the company 2 Marks 2. Calculate the Accounting Payback period for Project M. If the Maximum Payback period allowed by the company lenders is 2.90 years would you accept Project M Marks 3. Assume Project A and Project are mutually exclusive. The capital expenditure budget for next year is $83,000.000. If you have to select between Project A and Project U which one would you select? Show relevant calculations to justify your decision 14. Mark