'Ihree projects being considered. Projects A1 and A2 are mutually exclusive (based on equipment that would be supplied from two different sources] and Project B which is independent of the A projects. Following are the projected cash ows of the projects: 100: ErniectAl ErniectAZ Bturect 0 $(20,000,000) $92,500,000) $(s2,000,000) 1 10,000,000 10,000,000 20,000,000 2 9,000,000 12,000,000 20,000,000 3 12,000,000 2,000,000 20,000,000 4 -- 5,000,000 20,000,000 Using the MCC which you will calculate based on the information below, determine which project's should be accepted. Discuss the techniques used and how your decision of which project's to accept is inuenced by the techniques used. The company has an optimal capital structure of 50% debt, 10% preferred stock and 40% common equity. The corporation's current tax rate is 30%. a] The company currently borrows funds at an average rate of 10%. Find the after tax cost of debt. b) The price of preferred stock today is $125. Floatation fees are $5.50. The annual dividend on outstanding preferred stock is $12.00. Find the cost of issuing new preferred stock. c] The price of common stock today is $25.50, the most recent dividend was $1.95 and growth is expected to remain constant at 5%. The flotation cost of issuing new common