QIII) Iota Industries' Market Value Balance Sheet (S Millions) and Cost of Capital Assets Cost of Capital Liabilities 400 Cash Debt Debt 0 800 Other Assets 1200 Equity Equity 14% Assume that new projects are of average risk for Iota and that the firm wants to hold constant its debt to equity ratio. What is its weighted costs of capital? Iota Industries is considering a new capital budgeting project that will last for three years. Based on research costing $77 million, it assumes gross profit of S200 million, $150 million, and S100 million in years 1, 2, and 3 respectively. It requires new equipment that costs $200 million and will depreciate down to zero at the conclusion of the project. The company has no need for more overhead during this project, but it will increase working capital by $10 million for the first year and reverse it evenly over the following two. Assume a tax rate of 35% and fill in the table below. Iota Industries New Proiect Free Cash Flow ear Free Cash Flows ebt Capaci QIII) Iota Industries' Market Value Balance Sheet (S Millions) and Cost of Capital Assets Cost of Capital Liabilities 400 Cash Debt Debt 0 800 Other Assets 1200 Equity Equity 14% Assume that new projects are of average risk for Iota and that the firm wants to hold constant its debt to equity ratio. What is its weighted costs of capital? Iota Industries is considering a new capital budgeting project that will last for three years. Based on research costing $77 million, it assumes gross profit of S200 million, $150 million, and S100 million in years 1, 2, and 3 respectively. It requires new equipment that costs $200 million and will depreciate down to zero at the conclusion of the project. The company has no need for more overhead during this project, but it will increase working capital by $10 million for the first year and reverse it evenly over the following two. Assume a tax rate of 35% and fill in the table below. Iota Industries New Proiect Free Cash Flow ear Free Cash Flows ebt Capaci