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 Scenario 1 Scenario 2 Cost of Capital Tax Rate Debt $4,000,000.00 $1,000,000.00 8% 30% Preferred Stock 1,200,000.00 1,500,000.00 10% Common Stock 1,000,000.00 3,700,000.00 13% Total $6,200.000,00 $6,200,000.00 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 (0.9.3555 should be entered os 35.55).) Scenario 1 Weight Scenario 2 Weight Tax Rate Scenario 1 Scenano 2 Weighted Cost Weighted Cost Cost of Capital 8 30% 10% Debt Preferred Stock Common Stock Total 13% Part 2 1 Assume the new project's operating cash flows for the upcoming 5 years are as follows: points Initial Outlay Inflow year 1 Inflow year 2 Intlow year Inflow year 4 Inflow year 5 WACC Project A $.6.200,000.00 1.270.000.00 1750,000.00 1980,000.00 2.160,000.00 2,450,000.00 2.0. What are the WACC (restated from Part 1), NPV, IRR. and payback years of this project? (Negative values should be entered with o 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 hom Part NPV Payback Method