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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

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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% Component Debt Preferred Stock Common Stock Total Tax Rate 30% Scenario 1 $4,000,000.00 1200.000.00 1.000.000.00 $6.200.000.00 Scenario 2 S1000,000.00 1.500.000,00 3.700,000.00 $6200,000.00 Cost of Capital 896 10% 13% 1-0. 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 (eg. 3555 should be entered os 35.55).) Scenario 1 Weight Scenario Web Scenacol SER Weighted magad cost Cost of Caps Tax Rate 104 De Pretend to man Stock 24 10 11 Wiederal structure Manson choose to fund me new.de Se sce Part 2 Assume the new project's operating cash flows for the upcoming 5 years are as follows: Initial Outlay Inflow year it inflow year 2 Inflow year 3 Intlow year 4 Inflow year 5 WACC Project A $ -6,200.000,00 1.270.000 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 paypack 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).) WAG Part FRIRE fak Menge 2. comeny a cestor rejects project base nestcome using the net present wave inevi method Ceascaped ,LIH

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