1. Spearmint coin trading has a WACC of 14% and has already raised $50 million in capital for this years budget. Greta Adams, CFO , Has been presented with an attractive new project with an IRR of 25%, which would require raising an additional $20 million.

If the companies WACC Schedule has a breakpoint at $62 million what effect would excepting the new project have on the farms WACC?

A) Accepting will lower the firms WACC since the projects IRR is so high

B) Accepting will lower the firm WACC since the project crosses the breakpoint

C) Accepting will rise the firm WACC since the projects IRR is so high

D) Accepting will raise the firm WACC since the project crosses the breakpoint