You were hired as a consultant to Sherwood Company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 13.25%. The firm will not be issuing any new stock. What is its WACC? Jetson is considering a project that has the following cash flows: Year 0 1 Cash Flow CFO = ? $2,000 3,000 3,000 1,500 2 3 4 The project has a payback of 2.5 years, and the firm's cost of capital is 12%. What is the project's NPV? Hint: Find out CFO first