MAKE SURE YOU COMPLETE ALL QUESTIONS WITHIN THIS PROBLEM. THERE ARE 14 DROPDOWN BOXES TO COMPLETE. You will receive partial credit for all correct answers.

The Phillips Company is considering increasing its headphone production capacity to fulfill a large private contract. The CFO has tasked her finance staff to analyze the project and make a recommendation to the executive team to be included at next months board meeting. The CFO provides the following information to the analyst:

COST OF CAPITAL

Phillips current capital structure is comprised of $100,000,000 in debt, $200,000,000 in preferred equity, and $800,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 8.85% and a current market price of $977. Preferred shares of Phillips are trading at $54/share and pay an annual dividend of $2.65/share. The common stock of Phillips has a beta of 0.8 and trades at $22/share. The 10-year US treasury yield is 2.65%. The market risk premium is estimated at 10.35%. Their tax rate is 30%.

Round answers to four decimal places (ie .1125 or 11.25%)

What is the current cost of Phillips's debt capital?

Group of answer choices: 7.25% - 6.45% - 10.43% - 9.64%

What is the current cost of Phillips's preferred equity capital?

Group of answer choices: 3.41% - 4.91% - 2.68% - 5.64% -

What is the current cost of Phillips common equity capital (using CAPM)?

Group of answer choices: 14.32% - 11.74% - 10.93% - 12.41%

What is Phillips Weight Average Cost of Capital?

Group of answer choices: 9.43% - 6.24% - 8.54% - 7.11%

Use the answers above and the information below to complete the remaining questions.

PROJECT CASH FLOWS

Philips expects to invest $16,700,000 in new/plant equipment. The contract will last for 10 years, at which point it expects its plant equipment to have a salvage value of $5,000,000. They plan to finance this project using 40% debt and 60% equity. Their investment banker advises there are transaction costs of 3% on debt and 12% on equity. Phillips expects to increase its accounts receivable by $5,000,000, its inventory by $3,000,000, and its accounts payable by $2,000,000. It expects to sell 45,000 units at a price of $290/unit, with a variable cost per unit of $180. It expects additional operating costs each year of $950,000. Phillips tax rate is 30%.

• What is the annual depreciation for the fixed assets of this project?
  • Group of answer choices: [$970,000, $1,670,000", $1,170,000, $2,100,000]
• What is the firms weighted average flotation cost? (round to four decimal places)
  • Group of answer choices [9.87%, 8.40%, 6.70%, 7.45%]
• What is the firms flotation-adjusted Initial Capital Expenditure? (round to the nearest $100,000)
  • Group of answer choices [$18,200,000, $17,400,000, $16,300,000, $17,000,000]
• What is the projected Cash flow at Year 0? (round to the nearest $100,000)
  • Group of answer choices [$23,200,000, $19,400,000, $22,400,000, $24,200,000]
• What is the expected Cash flow Year 1-9? (round to the nearest $100,000)
  • Group of answer choices [$4,400,000, $2,000,000, $3,200,000, $2,800,000]
• What is the expected Cash Flow of Year 10? (round to the nearest $100,000)
  • Group of answer choices [$12,800,000, $11,800,000, $15,900,000, $14,200,000]
• What is the projects Net Present Value?
  • Group of answer choices [$600,000, ($790,000), $420,000, $1,850,000]
• What is the projects Internal Rate of Return?
  • Group of answer choices [6.41%, 11.09%, 8.45%, 9.76%]
• What is Phillips Accounting Break-even unit sales level?
  • Group of answer choices [22,347 units, 14,843 units, 17,977 units, 19,273 units]
• What is Phillips Cash's Break-even unit sales level?
  • Group of answer choices [6,114 units, 5,417 units, 9,764 units, 8,637 units]

I am having trouble figuring out these questions. I need immediate help pls!