Excel Online Structured Activity: Residual dividend model Walsh Company is considering three independent projects, each of which requires a $3 million investment. The estimated internal rate of retum (IRR) and cost of capital for these projects are presented below: \begin{tabular}{lll} Project H( High risk ): & Cost of capital =17% & IRR =19% \\ Project M (Medium risk) ) & Cost of capital =13% & IRR =10% \\ Project L (Low risk): & Cost of capital =7%4 & TRR =8% \end{tabular} Note that the projects' costs of capital vary becouse the projects have different levels of risk. The company's optimal capital structure calls for 45% debt and 55% common equity, and it expects to have net income of 54,777,000. The data has been collected in the Microsoft Excel Onilne file below, Open the spreadsheet and perform the required analysis to answer the question below. Project L (Low risk): Cost of capital =7% IRR=8% Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 45% debt and 55% common equity, and it expects to have net income of $4,777,000, The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. 820 fS \begin{tabular}{|c|c|c|c|} \hline 4. & A & B & c \\ \hline 1 & Residual dividend model & & \\ \hline 2 & & & \\ \hline 3 & Each project's investrnent cost & $3,000,000 & \\ \hline 4 & Cost of capital, - Cost of capitalu & 4.00% & \\ \hline 5 & IRRuIRRL & 2.00% & \\ \hline 6 & & & \\ \hline 7 & Project: & Cost of Capital & Internal Rate of Roturn \\ \hline 8 & H (High Rosk) & 17.00% & 19.00% \\ \hline 9 & M (Medium Risk) & 13.00% & 10.00% \\ \hline 10 & L. (Low Risk) & 7.00% & 8.00% \\ \hline \end{tabular} D E F G H 11 Firris Capital Structure Weights: \begin{tabular}{ll} \hline Fi debt in copital structure, wd & 45.00% \\ Wi common equity in capital structure, w4 & 55.00% \end{tabular} Net income $4,777,000 Calculation of Capital Budget: Include in sheet1