WLC $,$ an all equity firm, is considering the three investment opportunities with the following net after tax cash flows shown in the table below. The company currently has no debt but can borrow at the risk free rate of $6\%.$ WLC used CAPM to estimate its cost of equity. The firm's beta is currently $1\mathrm{.}20,$ and the expected return on the market portfolio is $10\%.$ WLC has a $20\%$ marginal tax rate.

a$)$ Assume the firm will finance the project using equity only.

i$)$ Calculate the firms current WACC?

ii$)$ Which project$($s$)$ should the firm undertake keeping in mind the projects are not mutually exclusive?

Note : If your answer is Project $Y$ write $Y,$ and if its projects $Y$ and $Z$ write $Y,Z$ and if its all them write $x,Y,Z$

b$)$ Assume the firm has instead decided to finance the project using $$400,000$ in equity and $$100,000$ in debt

i$)$ What is the cost of equity after recaptilization

ii$)$ Calculate the firms $($after$-$tax$)$ WACC with the increase in leverage.

iii$)$ Which project$($s$)$ should the firm undertake now keeping in mind the projects are not mutually exclusive?

$\backslash$table$[[$Year$,$Project X$,,$Project $Y,$PV$,$Project Z$,],[0,-30000,,-25000,,-26000,],[1,15000,,16000,,7000,],[2,18000,12000,,10500,,],[3,16000,,80000,,15000,]]$