REVISION QUESTION A project management company has been provided a budget of fixed budget of $500,000 and the committee has been given the task to assess the eligibility for the funds from the three projects below : As according to the budget allocation, the company can only choose one of the projects above. The projects are to be financed by equity and debt in the proportion of 60 and 40 . The cost of capital of equity is 20% and cost of debt is 10% All projects requires an investment of $500,000 Required: i. Calculate the weighted average cost of capital ( to the nearest whole per cent) ii. Prepare net present value statements for each project using the percentage rate computed in (i). iii. Using a payback approach, compute the payback period for each project