MLC is looking to expand. Determine the following. *Must be in Excel*

1. If the firm can raise $700,000, it can purchase two brand new hemp extraction machines. These two machines will allow MLC to distribute its products to retail stores, while maintaining the Internet store, thereby generating monthly revenues at 106% of the projected annual revenue for the entire calendar year 2021 (consider your income statement). Calculate the NPV and IRR for this option if the machines will generate the same amount of product for their entire lifespan of five years, resulting in the same revenues generated for those four years. The expected return is 6.29%.
2. The firm can take out a five-year bank loan of $700,000, which will have a 3.75% interest rate, compounded monthly. Calculate the monthly payment for this loan (assume equal distribution of the interest payments [no amortization]).
3. The firm can raise capital through the sale of bonds and stocks. The preferred ratio is 40% bonds and 60% stocks. Determine the weighted average cost of capital (WACC) if the firm sells 5-year bonds, each with a face value of $1,000, annual coupons of 6%, an interest rate of 6.4% compounded annually (find the cost of the bonds), and a tax rate of 25% and shares of common stock with a price of $0.50/share and R_f = 1.25%, R_m = 2.75%, and = 3.0. In addition to the WACC, please determine the number of bonds and shares of stock that would need to be sold to get the firm to $700,000.
4. The firm can get funded by a single venture capitalist who will loan the $700,000, for five years, with the full repayment due at the end of the five years. There are no payments or dividends. The interest will be 8.45%, compounded monthly. Determine the future value of this loan.
5. Based on what you found for a-d, would you recommend that MLC expand its business, and if so, what capital budgeting method (b, c, or d) will you elect to use to finance the expansion?