Time	0	1	2	3	4	5
Cash Flow	-$175,000	-$65,800	$94,000	$41,000	$122,000	$81,200

1. The required rate of return for this assignment is 11%

2. Maximum allowable payback and discount payback statistics for the firm are 3 and 3.5 years, respectively

3. The firm has a capital structure of 73% equity, 5% preferred stock, and 22% debt

4. The firms before-tax cost of debt is 12%, its cost of equity is 15%, and its cost of preferred stock is 10%

5. The firms debt interest is fully tax deductible

6. The firms tax rate is the standard corporate tax rate

7. Based on the above information, calculate the following capital budgeting decision methods

• o NPV
• o Payback
• o Discounted Payback
• o IRR
• o PI
• o Firm-wide WACC

• Evaluate each capital budgeting decision method to determine if the assignment should be accepted or rejected (note: determine the feasibility of the assignment for EACH method)