Part 1 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%. Tax Rate 3095 Component Debt Preferred Stock Common Stock Total Scenario 1 $4,000,000.00 1,200,000.00 1,000,000.00 $6,200,000.00 Scenario 2 $1,000,000.00 1,500,000.00 3,700,000.00 $6,200,000.00 Cost of Capital 8% 10% 13% 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).) Scenario 1 Scenario 2 Weighted Cost Weighted Cost os Cost of Capital Tax Rate Scenario 2 Weight % 16.13% 24.19% 30% Scenario 1 Weight % 64.529 19.35% 16.13% 100.00% Debt Preferred Stock Common Stock Total 8% 10% 59 68% 13% 100.00% Part 2 Assume the new project's operating cash flows for the upcoming 5 years are as follows: 100 points Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 WACC Project A $ -6,200,000.00 1,270,000.00 1,750,000.00 1.980,000.00 2,160,000.00 2,450,000.00 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).) WACC (from Part 1) NPV IRR Payback Method cranscribed image text