Complete and submit the following two case studies:
Case 1:
· Create an IOS chart with the following investment alternatives: Project A has an IRR of 8% and will add $10 million to the capital structure, while Project B adds $12 million of capital but returns 6.5%. Project C has an IRR of 9.3% while requiring $4 million capital and Project D returns 12% on $13.35 million of capital. Finally, Project E yields an IRR of 11.7% on $4 million of capital. The initial WACC is 7.75% with a break point of $13 million where a new WACC of 8.12% occurs. A final breakpoint occurs at $25 million boosting the WACC to 9.25%. Creditors will not extend additional credit beyond $25 million.
Case 2:
· Complete the attached Capital Budgeting case study in APA format. Be sure to describe the processes used an include graphs and/or charts where appropriate.
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