25. Amelias Artwork, Inc., a manufacturer of artist paints and products is planning to value a project. The project will require an initial investment of $1,250,000 and will generate cash flows of $250,000 in year 1, $312,500 in year 2, $375,000 in year 3, $437,500 in year 4, and $475,000 in year 5. Amelia has financed the firm with 40% debt and 60% equity. The cost of debt before tax is 5.19%, the cost of equity is 18.75%, and the tax rate is 40%. Determine the firms weighted average cost of capital (WACC).

A: 13.33%

B: 12.50%

C: 18.75%

D: 23.94%

E: None of the provided answers are correct.