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1). Find the WACC. Assume the company's tax rate is 28%.

Debt: 400 shares of outstanding bonds with 6.5% coupon, £50,000 par value and 20 years to maturity, are sold at 92% of par; the bonds make semi-annual payments. Its Yield-to-maturity is 3.63% every 6 months.

Equity: 250,000 shares outstanding, selling for £57 per share; the beta is 1.05.

Preference shares: 15,000 of 5% preference shares outstanding, currently selling for £93 per share against a face value of £100.

Market: 8% market risk premium and 4.5% risk-free rate.

2). Smith Company sells $200,000 of ten-year, 8% bonds to yield 10% on January 1, 2018. The bonds pay interest annually on December 31. The bonds were sold at a discount of $24,578. The bond carrying value at the end of 2019 is 

3). Your firm is contemplating the purchase of a new $565,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $57,000 at the end of that time. You will save $275,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $72,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)