please answer step by step

1. (20 pts) A company's free cash flow (FCF) is expected to be $10 million next year, $20 million in the second year, and $30 million in the third year. The FCF is expected to inerease at the rate of 4% thereafter. The WACC for the company is 10%. The company's balance sheet shows $20 million iphegt-terminvestments that are ermelated to operations. The belauce sheet etso shoue $50 million in accounts payabi $90 puttion in notes payable ( $30 milyion in long-term debr 540 gillion in preterred stock, and 5100 Tilion in total common equity. If the company hine 10 gillion shares of stock, whan your best estimate for the stock price per share? ( $29.88 ) 2. (15 pts) There are two mutually exclusive projects with the following cash flows: The opportunity cost of eapital is 10\%. Calculate the NPV ( 5 points), IRR ( 3 points), MIRR ( 5 points) and payback period ( 2 points) for both projects. Which project should be selected? (NPV IRR MIRR, Payback period Project A (37.3,27.8,17.2,1.86 years Project B(42.8,22.16,18.12,3 years 3. (25 pts) Superserv Ine, intends to acquire new equipment for $10 million and has an estimated life of 5 years and a salvage value of $800K. The new equipment is expected to allow additional annual sales of $5 million over the next 5 years. The associated additional anmual operating costs are expected to be $2.5 million, while the inferest on debt issued to finance the project is $1.5 million. In addition, working capital will increase by $1,2 million at the outset. The project's cost of capital is 10%. The firm's tax rate is 40%. The anmual depreciation charge on the new machine is $2 million. What is the project's NPV? (\$-1.438m) 4. (20 pts) You are planning on acquiring a machine for a business that you have just started. The machine costs $35,000 and you can get a 5 year term loan at 10%; at the end of the five years.. The machine will be depreciated at a rate of $6,000 every year. At the end of 5 years, the machine will have a value of $5,000. The manufacturer of the equipment is willing to lease the machine for $8,000 a year, with lease payments due at the end of the year. If the firm leases it will acquire the machine for $5,000 at the end of 5 years. This cost of $5000 already accounts for related future depreciation tax savings. The tax rate for your business is 35%. Should you buy or lease? (Cost of lease = $25,259, Cost of buying =$26,273