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Part II (50%) The company has the following capital structure: Account $ Costs before tax Long-term Debt 2,000,000 10% Preferred Stock 500,000 14% Common Stock

Part II (50%)

The company has the following capital structure:

Account

$

Costs before tax

Long-term Debt

2,000,000

10%

Preferred Stock

500,000

14%

Common Stock

2,500,000

18%

The company has the following capital structure:2. Using the same cash flows in exhibit I find the NPV, PI, IRR and MIRR (Use the WACC you have computed above). Which project(s) would you recommend and why (show your calculations)?

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