3. Jordona Ltd wants to invest Tk. 5 lacs in a new project. The duration of...

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3. Jordona Ltd wants to invest Tk. 5 lacs in a new project. The duration of project is 5 Years.The Company uses straight line method of depreciation. The Company tax rate is 40% and have no salvage value. The cash flows of the company are Tk. 120000, Tk. 150000, Tk. 130000, Tk. 100000 and Tk. 180000 respectively. If the cost of capital is 8%, then calculate IRR of the project. 10 4. The financial manager of Federal Financial leasing & investment Ltd has well-structured capital. The company have 8% Debenture cost Tk.100000 Tk., 12% Preference Share cost Tk. 50000. Common Share Tk. 120000 and Retained Earning Tk. 30000. 10 Other Informations: I. The common Shares of the company sell for TK. 30 each. II. The market price of preference share is Tk. 96 (par value Tk. 100). A flotation cost of 5% of market price would be incurred to the issue of all kinds of share III. It is expected that the company will pay next year a dividend of Tk. 2.5 per share that will grow at 4% forever. The Company's marginal tax rate is 40%. Requirements: You are required to calculate WACC of Federal Financial leasing & investment Ltd 3. Jordona Ltd wants to invest Tk. 5 lacs in a new project. The duration of project is 5 Years.The Company uses straight line method of depreciation. The Company tax rate is 40% and have no salvage value. The cash flows of the company are Tk. 120000, Tk. 150000, Tk. 130000, Tk. 100000 and Tk. 180000 respectively. If the cost of capital is 8%, then calculate IRR of the project. 10 4. The financial manager of Federal Financial leasing & investment Ltd has well-structured capital. The company have 8% Debenture cost Tk.100000 Tk., 12% Preference Share cost Tk. 50000. Common Share Tk. 120000 and Retained Earning Tk. 30000. 10 Other Informations: I. The common Shares of the company sell for TK. 30 each. II. The market price of preference share is Tk. 96 (par value Tk. 100). A flotation cost of 5% of market price would be incurred to the issue of all kinds of share III. It is expected that the company will pay next year a dividend of Tk. 2.5 per share that will grow at 4% forever. The Company's marginal tax rate is 40%. Requirements: You are required to calculate WACC of Federal Financial leasing & investment Ltd