Question: 1. What is the project's IRR? 0 1 2 3 4 -$1500 $500 $300 $500 $550 2. You were hired as a consultant to Keys

1.

What is the project's IRR?

0 1 2 3 4

-$1500 $500 $300 $500 $550

2. You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 30% debt,

10% preferred stock,

and 60% common equity.

The after-tax cost of debt is 6.8%, the cost of preferred stock is 7.5%, and the cost of common equity is 12%. What is the firms WACC?

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