I want solution for 5 and 6

5. The firm has INR 20 lakhs equity capital, 10% preference shares of INR 8 lakhs, 12% Debentures of INR 12, 00,000 and 14% Loan of 20 lakhs. The market return is 17.3 % and tax rate is 50% estimate WACC 6. A company is considering the replacement of its existing machine which is obsolete and unable to meet the rapidly rising demand for its product. The company is faced with two alternatives: (i) to buy Machine A which is similar to the existing machine or (ii) to go in for Machine B which is more expensive and has much greater capacity. The cash flows at the present level of operations u follows: nder the two alternatives are as Machine A Machine B - 25 40 10 20 16 4 14 17 14 15 14 The Company's cost of capital is 10%. The finance manager tries to evaluate the machines by calculating the following a. Net Present Value b. Profitability Index c. Payback period