er Johnson, the CFO of Homer Industries, Inc is trying to determine the weighted Cost of Capital (WACC) based on two dilte stal structures under consideration to fund a new project. Assume the company's tax rate is 30% Tax Rate 30% Component Debt Preferred Stock Common Stock Total Scenario 1 $5,000,000.00 1,200,000.00 1,800,000.00 $8,000,000.00 Scenario 2 $2,000,000.00 2,200,000.00 3,800,000.00 $8,000,000.00 Cost of Capital 8% 10% 13% Complete the table below to determine the WACC for each of the two capital structure scenarios (Enter your answer as a rcentage rounded to 2 decimal places (e.g..3555 should be entered as 35.55).) Scenario 1 Scenario 2 Weight Scenario 1 Scenario 2 Weighted Cost Weighted Cost Cost of Capital Tax Rate Weight 30% 8% 10% 139 Preferred Stock Common Stock 0.00% 0.00% Vpital structure shall Me Johnson choose to fund the new project 1-b. Which capital structure shall Me Johnson choose to fund the new project? Scenario 1 O Scenario 2 Part 2 Assume the new project's operating cash flows for the upcoming 5 years are as follows Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 WACC Project A $-8,000,000.00 1,020,000.00 1,850,000.00 1,960,000.00 2,370,000.00 2,550,000.00 2-a. What are the WACC (restated from Part 1). NPV, IRR and payback years of this project? (Negative values should be er a minus sign. All answers should be entered rounded to 2 decimal places. Your answers for WACC and IRR should be percentages (e.g. 3555 should be entered as 35.55).) WACC (from Part 1) NPV IRR Payback Method Tillow yours WACC 2,550,000.00 2. What are the WACC (restated from Part 1). NPV, IRR, and payback years of this project (Negative values should be a minus sign. All answers should be entered rounded to 2 decimal places. Your answers for WACC and IRR should be percentages (e.g. 3555 should be entered as 35.55).) WACC (from Part 1) NPV IRR Payback Method 2-b. Shall the company accept or reject this project based on the outcome using the net present value (NPV) method O Project A should be accepted Project A should be rejected 1 of 1 : are