1. The project has projected cash flows as follows. The cost of capital (k) is 10% and the payback period is 2.8 years. Should the project be accepted under the mirr decision method?
Year. Cash flow
0. -100,000
1. 40,000
2. ??
3. 50,000
2. Take it All Away has a cost of equity of 10.90 percent, a pretax cost of debt of 5.51 percent, and a tax rate of 35 percent. The company's capital structure consists 74 percent debt on a book value basis, but debt is 40 percent of the company's value on a market value basis. What is the company's WACC? Please show work.