Question: Part I. Answer the following problems (8 points): 1. A firm is considering a capital project for the coming year. The project has an internal

 Part I. Answer the following problems (8 points): 1. A firm

Part I. Answer the following problems (8 points): 1. A firm is considering a capital project for the coming year. The project has an internal rate of return of 14 percent. If the firm has the following target capital structure and costs, what should their decision be and why? 2. A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions

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