Question Question 3 (a) What is the net present value of a project with the following cash flows if the required rate of return is 12 percent? (5 marks) Year 0 1 2 3 Cash flow (RM42 398) 13,407 21 219 17,800 (b) A project has an initial cost of RM6,500. The cash inflows are RM900, RM2.200, RM3,600. and RM4,100 over the next four years, respectively. What is the payback period? (4 marks) (e) Cost of capital and weighted average cost of capital: Holdup Bank has an issue of preferred stock with a RMS stated dividend that just sold for RM92 per share. What is the bank's cost of preferred stock? (3 marks) (m) Decline Bhd. is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 11 percent annually. What is the after-tax cost of debt if the tax rate is 33 percent? (4 marks) Mullincaux Corporation has a target capital structure of 41 percent common stock 4 percent preferred stock, and 55 percent debt. Its cost of equity is 19 percent, the cost of preferred stock is 6.5 percent, and the pre-tax cost of debt is 7.5 percent. What is the firm's WACC given a tax rate of 34 percent? (4 marks