Capital Budgeting - NPV, IRR, WACC and Payback Period

Capital Budgeting - Clear Lake Bakery Need to answer the 8 questions as noted in the PDF document - CapitalBudg.ClearLakeBakery.pdf Exercises to be completed in excel and workings shown. I have attached copies of previous lecture and exercises to show method required.1. Calculate the yield-to-maturity for the mortgage bond.

2. Estimate the CLB’s cost of equity using the Capital Asset Pricing Model

(Government Bond rate 5%, CLB’s beta 0,95 risk premium 5,%)

3. What is the firm’s overall cost of capital using Market values.

4. Find the net cash flows for the automated mixer.

5. Calculate the net present value and the IRR for the automated mixer project.

6. Determine the NPV and the IRR of the continuous oven.

7. Determine the NPV and the IRR of the semiautomated packing unit.

8. Which capital projects should Mike undertake this year?