Part C: WACC and Capital Budgeting Calculate the firms WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet. The firm has no preferred stock). Use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects. Assume the projects are mutually exclusive and the firm has the money available to fund the project.

Part D: Analysis You will must offer suggests to a senior financial manager and CFO on the proposed projects. Be sure to include a discussion of external funding and where it should come from if necessary and which project the firm should undertake.

Project A Project B Project C Year -100,000 250,000 -500,000 Year 1 50,000 100,000 400,000 Year 2 30,000 100,000 50,000 Year 3 30,000 50,000 50,000 Year 4 20,000 50,000 50,000 12/31/18 12/31/17 12/31/16 12/31/15 Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets 8,719,000 10,607,000 9,157,000 9,095,000 270,000 8,897,000 6,966,000 2,912,000 7,140,000 7,021,000 6,693,000 6,436,000 3,126,000 2,944,000 2,722,000 2,719,000 2,042,000 43,000 31,000 730,000 21,297,000 29,512,000 25,569,000 21,892,000 Long Term Investments 1 Property Plant and Equipment 2 Goodwill 3 Intangible Assets Other Assets 5 Total Assets 2,407,000 2,039,000 1,949,000 2,310,000 17,587,000 17,237,000 16,590,000 16,316,000 14,806,000 14,741,000 14,429,000 14,176,000 15,823,000 13,835,000 13,432,000 13,080,000 5,122,000 910,000 635,000 749,000 77,042,000 78,274,000 72,604,000 68,523,000 7 Current Liabilities 3 Accounts Payable Short/Current Long Term Debt Other Current Liabilities 1 Total Current Liabilities 7,211,000 6,724,000 6,157,000 5,545,000 3,951,000 4,017,000 4,400,000 3,108,000 6,601,000 4,112,000 3,870,000 3,882,000 17,763,000 14,853,000 14,427,000 12,535,000 3 Long Term Debt # Other Liabilities 5 Total Liabilities 28,293,000 33,793,000 30,052,000 29,591,000 12,611,000 14,522,000 11,102,000 10,466,000 58,667,000 63,168,000 55,581,000 52,592,000 7 Stockholders' Equity 3 Total Stockholder Equity 18,375,000 15,106,000 17,023,000 15,931,000 Balance Sheet Income Statement Projects + 12/31/15 12/31/18 12/31/17 12/31/16 2 Revenue 3 Total Revenue 4 Cost of Revenue 5 Gross Profit 51,728,000 57,902,000 56,519,100 56,488,000 23,502,000 25,340,000 25,399,800 25,283,000 28,226,000 32,562,000 31,119,300 31,205,000 7 Operating Expenses 8 Selling General and Administrative 9 Operating Income or Loss 19,184,000 9,042,000 20,706,000 11,856,000 21,225,600 9,893,700 20,736,000 10,469,000 11 Income from Continuing Operations 12 Other Income/Expenses Net 13 Interest Expense 14 Income Before Tax -1,148,000 1,220,000 6,674,000 -1,507,000 1,288,000 9,061,000 -1,508,400 1,207,800 7,177,500 2,256,000 853,000 7,360,000 16 Income Tax Expense 17 Net Income 2,696,000 3,978,000 4,130,000 4,931,000 1,956,600 5,220,900 1,708,000 5,652,000 Balance Sheet Income Statement Projects +