26-27, consider the following project with a 7% project's cost of capital. Initial cost Year l Year 2 Year 3 Project -250 26. What is the discounted payback period? 75 125 200 a. 2.43 years b. 2.85 yeans c. 2.71 years d. 2.25 yeans 27. If a firm's cutoff period is 2.6 years, this project should be a. Accepted b. Rejected 28. Use the following capital structure information for a firm. Market Value Capital Structure Bonds, coupon-7% paid annually ($1000 par value, remaining maturity-10 years) $20 million Preferred stocks $8 million $80 million Total value The bond's current price is $935.82 The preferred stocks common stocks for $10 per share. The preferred stock pays $1 dividend per share. The common stock's beta is 1.2, the market risk premium is 8%, and the risk-free rate is 5%. The firm's average tax rate is 40%. are selling for $16 per share and the Find the firm's WACC 11.31% b. 12.46% c. 7.06% d. 13.12%