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Part 1 Part 2 Assume the new project's operating cash flows for the upcoming 5 years are as follows: 2 - a . What are

Part 1 Part 2
Assume the new project's operating cash flows for the upcoming 5 years are as follows:
2-a. What are the WACC (restated from Part 1), NPV, IRR, and payback years of this project? (Negative values should be entered with
a minus sign. All answers should be entered rounded to 2 decimal places. Your answers for WACC and IRR should be whole
percentages (e.g..3555 should be entered as 35.55).)
2-b. Shall the company accept or reject this project based on the outcome using the net present value (NPV) method?
Project A should be accepted
Project A should be rejected
Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different
capital structures under consideration to fund a new project. Assume the company's tax rate is 30%.
1-a. Complete the table below to determine the WACC for each of the two capital structure scenarios. (Enter your answer as a whole
percentage rounded to 2 decimal places (e.g..3555 should be entered as 35.55).)
1-b. Which capital structure shall Mr. Johnson choose to fund the new project?
Scenario 1
Scenario 2
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