Please answer the following questions in a word document and upload to Canvas.

Q1) Please calculate the Cost of Debt (not taking taxes into consideration).

Cost of Debt = *Calculate the YTM for the bond which is sold at a discount rate: that will be

your cost of debt.

Q2) Please calculate Cost of Equity (using the CAPM method)

Q3) Please calculate WACC

Q4) Please calculate NPV (remember to include the salvage value as part of the 5th year's cash

flow)

Q5) Please calculate IRR

Q6) Is this a good investment for Sunny Inc.? Why or why not?