Problem 3: RES company is considering a new project that to produce a new line of product in 2021. The initial investment in 2020 for producing new products costs $150,000. The cash inflows during the next four years of the project are Year 2021 2022 2023 2024 Cash inflows $60,000 $55,000 $70,000 $96,000 The capital structure required for the project is from the firm's capital with the following information: Debt: 9,000 of 9 percent coupon bonds outstanding, 4 years to maturity, $1000 par value each and the bonds have Yield to maturity of 14% and make semiannual payment. Preferred stock: 30,000 shares of 10 percent preferred stock outstanding, face value of each is $100. Assuming that required rate of return of preferred stock is 11%. Common stock: 40,000 shares outstanding, last year dividend was $3 per share and this company expect to pay a dividend constant growth rate of 6% each year. Required rate of return is 16%. Company Tax rate is 30%. Required: a. Calculate the value of bond, preferred stock and common stock. b. Calculate WACC assuming that all price from part (a) is the issuing price of securities. c. Evaluate the project by using NPV, IRR, and discounted payback period