Corporate Finance Management Write a paper of 1700 words that addresses the fo

Corporate Finance Management
Write a paper of 1700 words that addresses the following
topic. Each topic MUST have Headings:
1). What are the pros and cons of each of these 3 methods of
capital budgeting: Simple Payback Net Present Value IRR
2). How does use of each of the 3 methods adjust for
projects of varying risk.
3). In your own words what is meant by cost of capital;
would a firms CFO prefer a higher or lower cost of capital? Why?
The Firms balance sheet consists of $1 million of common
stock. The stock recently sold for $2/share; its most recent dividend was $.50
and its dividends have been growing at 5%/yr.
The Firms balance sheet also has $1 million of preferred
stock. The 9% dividend preferred stock has recently sold for $100/share
The Firms balance sheet also has $2 million of debt in the
form of bonds.
These $ 1000 face value 30 year bonds have a 5%
semi-annual interest rate and have been selling at $840 each; they INITIALLY
were issued 10 years ago.
4). Calculate the firm Weighted average cost of the capital
(WACC) from the above information given.

5). Calculate the net present value of all these future cash flows [cash inflows cash outflows]
for the two alternatives below show
your work by using Excel :
Here are the alternatives proposals for Question 5 above.
Proposal A:$100000 initial investment4 years of annual savings of $30000/yr.Proposal B:Initial investment $500001st year savings 200002nd year savings 400003rd year savings 10000