MKS Corporation had the following figures: -Interest rate on loan is 15% -Tax Rate is 25% -Total Debt outstanding is $2,000,000 -Number of Preferred stocks is 100,000 shares of $10 par value for which dividend rate is 16% -Number of common stocks is 3,000,000 shares of $1 par value -Risk-free rate of return is 14% -Beta for the company is 1.2 -Average Market return is 24% The company is evaluating three projects; M, K & S that are expected to generate the following:

The company is evaluating three projects; M, K & S that are expected to generate the following: Year M K S

Year 0 (700,000) (700,000) (700,000)

Year 1 280,000 170,000 230,000

Year 2 250,000 200,000 230,000

Year 3 200,000 240,000 230,000

Year 4 140,000 250,000 230,000

Year 5 90,000 280,000 230,000

Required: Calculate the Weighted Average Cost of Capital and Using payback, discounted payback, and net present value techniques, which project would you recommend, if any?