Your boss believes the company’s power plant is producing too much air pollution on a typical island. Your boss gives you three choices for dealing with this problem because he/she does not want to deal with it:
Assume that the cost of generating power on the mainland is approximately the same as the cost of generating power at the Island’s plant. Assume this comes as a surprise to you and you have not saved any money in reserves and you need to raise capital. Additional information is that market has a 12 percent market risk premium on the power plant with the risk-free rate being 5 percent with a company tax rate of 35 percent.
Current total raised capital at the power plant:(This will help you calculate the WACC)
Please answer inessayformat and provide yourExceldocument showing all your calculation in appendixes choose the best option for Island.Support your answer with your calculations. Also to calculations use specified resources other appropriate scholarly resources including older articles.