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6A3) Find the Discounted Payback period for the following project

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6A3) Find the Discounted Payback period for the following project. The discount rate is 6% 
                        Project X

Initial Outlay     $8,949

Year 1               $3,275

Year 2               $3,113

Year 3               $5,943

Year 4               $7,257 
Round the answer to two decimal places. 

6B3) Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping's cost of capital is 6.03 percent. What is the NPV of a project if the initial costs are $1,596,597 and the project life is estimated as 12 years? The project will produce the same after-tax cash inflows of $560,136 per year at the end of the year.

Round the answer to two decimal places.

 

6C3) Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $795,800.

Year 1: 168,500

Year 2: 226,500

Year 3: 238,500

Year 4: 170,800

Year 5: 179,900

Round the answer to two decimal places in percentage form. 

 

6D3) Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 10.98 percent. The initial outlay for the project is $340,020. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $196,249

Year 2: $10,448

Year 3: $118,287

Year 4: $403,283

Round the answer to two decimal places.

 

6F2) Last year the Black Water Inc. paid dividends $2.06. Company's dividends are expected to grow at an annual rate of 3% forever. The company's common stock is currently selling on the market for $85.06. The investments banker will charge flotation costs $3.30 per share. Calculate the cost of common equity financing using Gordon Model.

Round the answers to two decimal places in percentage form.

 

6G3) Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm's tax rate is 35%.

Calculate the firm's WACC adjusted for taxes using the market information in the table.

Round the answers to two decimal places in percentage form.

                         Number of Securities Outstanding    Selling price   Required Rate of Return Bonds                      1,496                                             $1,024                9.02%

Preferred Stocks      5,427                                             $98.24               16.00%

Common Stocks      1,437                                             $139.29              13.42%