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Problem: XYZ Corporation is evaluating a new project. The company's current capital structure is 4 0 % debt, 3 0 % equity, and 3 0

Problem: XYZ Corporation is evaluating a new project. The company's current capital structure is 40% debt, 30% equity, and 30% preferred stock. The after-tax cost of debt is 5%, the cost of equity is 12%, and the cost of preferred stock is 8%. Calculate the company's weighted average cost of capital (WACC).Problem:A company is considering investing in a new project that requires an initial investment of $500,000. The project is expected to generate cash flows of $150,000 at the end of each year for the next 5 years. The company's cost of capital is 10%. Calculate the net present value (NPV) of the project and determine whether the company should proceed with the investment.Problem:A company is considering two mutually exclusive projects. Project A requires an initial investment of $200,000 and is expected to generate cash flows of $80,000 per year for 4 years. Project B requires an initial investment of $250,000 and is expected to generate cash flows of $110,000 per year for 5 years. The company's cost of capital is 10%. Calculate the net present value (NPV) for each project and determine which project the company should choose.

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