Please answer step1 and step2

A $6M investment is considered by an electric bike manufacturing company to add a new production line for its new product, electric skateboards. The company has commissioned an exploratory study of where to place the new production line and which type of equipment to use. There are three types of machines to choose from for the company to install on the new assembly line. The machines have zero salvage value at the end of 10-year planning horizon. The company must select at least two alternatives from (i) Loan, (ii) Common Stocks, (iii) Preferred Stocks, and (iv) Retained Earnings to obtain the required amount of capital for the investment. Each of these capital sources could provide $3M to support the project. The company is anticipating rapid product penetration and aggressive growth after addition of the new production line. The major question for this case study is to nd out if the project is economicallyjustied. Part I: Cash Flow Construction Please follow this step to create the cash ow of the project and obtain its economic worth. Step 1: Choose the Capital Sources and Calculate WACC Based on the instruction provided to you, choose the appropriate options to form the capital for the investment, and the calculate WACC. Options Capital Sources Description 1 Loan Interest Rate = 8 96, Compounded Semi Annually PM Method: Plan 3 3 Common Stock Dividend = $5, Price = 5100, Growth Rate = 4% Payback Method: Plan 3: means make equal end of period payments over the loan period (uniform). Above options 1 and 3 are the sources for capital. Step 2: Calculate MARR Set MARR equal to rounded WACC (Round up WACC) + 3% for your further analysis