Allam's Corporation had the following figures in 2019:

-Interest rate on loan debt is 14%

-Tax Rate is 20%

-Total liabilities are 2,000,000

-Total assets are 5,000,000

-Risk-free rate of return is 15%

-Beta for the company is 1.2

-Average Market return is 25%

The company is evaluating two projects; S & N that are expected to generate the following:

Year

S

N

0

(500,000)

(500,000)

1

240,000

170,000

2

230,000

200,000

3

190,000

250,000

4

140,000

290,000

Required:

A) Calculate the Weighted Average Cost of Capital

B)Using payback, discounted payback, and net present value techniques, which project would you recommend, if any?