I have a couple of questions I need help with. 1.) Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that w

I have a couple of questions I need help with.

1.) Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost \$2,166,673. have a life of five years, and would produce the cash flows shown in the following table.

Year Cash Flow

1 \$617,404

2 -210,293

3 701,253

4 1,079,487

5 560,778

What is the NPV if the discount rate is 15.30 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)

2.) Capital Co. has a capital structure, based on current market values, that consists of 46 percent debt, 4 percent preferred stock, and 50 percent common stock. If the returns required by investors are 10 percent, 11 percent, and 19 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After tax WACC =