The capital cost of a project implemented within a 12-month period is $300,000, 70% is financed by a bank loan at an interest rate of 8% per annum, 15% is financed from preference shares with a guaranteed return of 12% per annum, and the balance is contributed as sponsors’ equity. The residual value of the project in Year 6 is $250,000 and the corporate tax rate is 25%. The sponsors have access to other investment opportunities that can yield returns of 15% per annum. The net annual cash flow from the first five years of operations is as follows:

Y1 (-30000)

Y2 24000

Y3 35000

Y4 (-35000)

Y5 40000

calculate the following:
a. The Weighted Average Cost of Capital
b. The Net Present Value of the Project
c. The Modified Internal Rate of Return