Help with 1 thru 6 thanks

Multiple Choice Questions (52 points) for year I. An investment cost SI0,000 with cash for the project. rate is 82%. The NPV and the IRR is The discou A) so: 15.2382% B) S3.33; 27.2242%. $5,000; 0% the other value as input. D) Can not answer without one or 2. The Balistan Rug Company is considering investing in a new loom that will cost each of s12,000. The new loom will create positive end year cash flow of s5,000 for the next 3 years. The intemal rate of return for this project is A) 10%. B) 11%. C) 12%. D) 13% 3. A firm has 35%, 15%, and 50% of long-term debt, preferred stock and common stock, respectively for its total capital. If the before-tax costs of capital are 10%, 12%, and 18%, respectively, what is the weighted average cost of capital (WACC) for the firm? Assume that the tax rate is 40%. 8.58% b. 12.18% c. 12.90% d. 14.30% 4. The increase in risk to equityholders when financial leverage is introduced is evidenced a. higher EPS as EBIT increases. b, a higher variability of EPS with debt than all equity. c, increased use of homemade leverage. d. the same value between levered and unlevered firms. 5. MM Proposition I with taxes is based on the concept that: equity a. the optimal capital structure is the one that is totally financed with b. the capital structure of the firm does not matter because investors can use homemade leverage. weighted average cost c. the firm of firm stays the same with leverage because the of capital stays the same. d. the value of the firm increases as total debt increases because of the interest tax shield. 6. An investment project is most likely to be accepted by the payback period rule and not accepted by the NPV rule if the project has A) a large initial investment with moderate positive cash flows over a very long period of time B) a very large negative cash flow at the termination of the project. C) most of the cash flows at the beginning of the project. D) All projects approved by the payback period rule will be accepted by the NPV rule