Your boss, the chief financial officer $($CFO$),$ has assigned you the task of evaluating $2$ proposed capital renovation projects that Senior Executives are considering. You have received the following information to address questions on your assignment.

After$-$tax cash flows for the projects $($in millions of dollars$)$:

Year CFL CFS

$0($$$30)($$$30)$

$1$ $$5$ $$20$

$2$ $$10$ $$10$

$3$ $$15$ $ $8$

$4$ $$20$ $ $6$

$1.$ The firm$$s tax rate $=21\%.$

$2.$ For bond financing: a$)$ The current price $=$ $$1,035.$ on $1,000$ par value bonds b$)$ The coupon rate $=8\%$ with annual payment. c$)$ The years to maturity $=16$ years. d$)$ Flotation cost $=0.$

$3.$ For preferred stock financing: a$)$ The current price $=$ $$115$ with a dividend rate $=14\%$ b$)$ The par value $=$ $$100.$ c$)$ Flotation rate $=15\%$

$4.$ For common stock financing: a$)$ The current price $=$ $$50$ per share. b$)$ The current dividend $($D$0)=$ $$4\mathrm{.}19.$ c$)$ Dividends are expected to grow at a constant annual rate $=5\%.$ d$)$ Flotation cost $=0$ e$)$ The company's beta $=1\mathrm{.}2$ f$)$ The yield on T$-$bonds $=7\%.$ g$)$ The market risk premium $=6\%.$ h$)$ Common shares outstanding $=50,000.$

$5.$ The company's target capital structure is $10\%$ debt, $20\%$ preferred stock, and $70\%$ common stock. What is the payback period for Project L $?$