The company has the following capital structure:

Account $ Costs before tax

Long-term Debt 2,000,000 10%

Preferred Stock 500,000 14%

Common Stock 2,500,000 18%

Calculate the weighted average cost of capital (WACC) with a tax rate of 36%.

Using the same cash flows in exhibit I find the NPV, PI, IRR and MIRR (Use the WACC you have computed above). Which project(s) would you recommend and why (show your calculations)?Please show all calculations !! Please show work!