1) Glitter Inc. uses one-quarter common stock and three-quarters debt to finance their operations. The after-tax cost of debt is 6 percent and the cost of equity is 13 percent. The management of Glitter Inc. is considering an expansion project that costs $1.2 million. The project will produce a cash inflow of $50,000 in the first year and 120,000 in each of the following 10 years (i.e., $120,000 in years 2 through 11.. What is the WACC and should Glitter Inc. invest in this project?