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Peter Johncon, the CFO of Homer Industries inc is trying to detenmine the Weighted Cost of Capitel (wacG) pested on fwa datieren capital structures under

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Peter Johncon, the CFO of Homer Industries inc is trying to detenmine the Weighted Cost of Capitel (wacG) pested on fwa datieren capital structures under consideration to fund a hew project. Ascume the compony's tax cate is 300s 1.a. Complete the tabie below to determine the Wacc for each of the two captal structure scenarios, (Enter your anwer as a whole pereentage rounded to 2 decimal places (e.0. 3535 should be entered as 33.35 ).) 16. Which capital structure shail Mr. Johnson choose to fund the new project? Scenario 1 Scenario 2 Assume the new projects operating cash fows fer the upcoming 5 years are as foliowh: 2-a. What are the WACC (restated from Part 11, NPV, IRR, and paypack years of this prgect? (Negetive values should be entered with a minus sign. All answers should be entered rounded to 2 deeimal places. Your anawert for WaCC end IAR thould be whole percenteges (e.0. 3939 should be entered as 39.35) ) 2.b. Shali the company accept or reject this project based on the outcopie using the net present value mpy methad? Project A snould be accepted Projct A snoula pe rejected

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