You are given the following information concerning Janicek Power Co$.$

Debt: $6,000$ bonds outstanding at a coupon rate of $10\%,$$$1000$ par value, $15$ years to maturity, selling for $90\%$ of par; the bonds make semi$-$annually payments.

Common stock: $6,000$ shares outstanding, selling for $$75$ per share; beta is $1\mathrm{.}10.$

Preferred Stock: $6,000$ shares of $5\mathrm{.}5$ percent preferred stock outstanding, currently selling for $$85.$

Assume that the corporate tax rate is $20\%$; market risk premium is $8\%$ and risk free rate is $6\%.$ Calculate and comment on the WACC.

$3.$a$)$ You are considering a new product launch in UK$.$ The project will cost $200,000$$$,$ have a four year life, and have no salvage value; depreciation is straight line to zero. Sales are projected at $120$ units per year; price per year will be $6,000$$$,$ variable cost per unit will be $4,500$$$,$ and fixed costs will be $50,000$ $ per year. The required return on the project is $20\%,$ and the relevant tax rate is $25\%.$ What is the accounting break$-$even level of output for base year? How do you interpret your results?

b$)$How do you explain the difference between Senario and Sensitivity Analysis.