ACC501 answer required

[mc100402849 Kashif Naz]

Can any one provide the solution for following questions:

A company needs, one of the two machines, machine x, cost 25000, and cash flow is 8000 a year for 6 years, machine y cost 30000 and cash flow of 7000 a year for six years , company has 12% cost of capital , calculate each machine pay back period and NPV.

 

 

Debentures: 5 billion

Preffered shares: 2.65 billlion

Common shares: 9.35 billion

 

Total : 17 billion, bond carry interest rate of 11.5 %, preferred and common stocks has 15.5 and 20% interest, corporate tax is 40%, what is WACC

Br

Kashif