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24. You want to invest in a project in Canada that has an initial cost of C$812,000 and is expected to produce cash inflows of

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24. You want to invest in a project in Canada that has an initial cost of C$812,000 and is expected to produce cash inflows of C$340,000 a year for three years. The project will be worthless after the three years. The risk-free rate in Canada is 4 percent while it is only 3 percent in the U.S. The applicable interest rate for the project in Canada is 12 percent. Assume the current spot rate is C$1 = $.7874. What is the WACC you should use if you want to evaluate the project using US cash flows? Please show your work. A) 10.92% B) 12% C) 13.09% D) 15% E) 16%

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