4. Anthony's Products, a privately-held company, has two operating divisions : Toys, which accounts for 30% of firm value; and, Food, which accounts for 70% of firm value. Anthony's Products is financed with debt ($10 million) and equity ($5 million); the equity has a beta of 2.07. Anthony's Products has gathered the following data on two competing firms, each of which is very similar to the corresponding division of Anthony's: Equity Beta Debt/(Debt +Equity) Toys Galore .70 .50 Food Tiger 1.20 .30 Assume the debt of ALL companies is risk-free. Further, assume the risk-free rate of return is 28, the expected return on the market portfolio is 10%, and the standard deviation of return on the market portfolio is 20%. a. Calculate the weighted Average Cost of Capital (WACC) of Anthony's Products. b. Anthony's Products' Toy division is considering a project with the following expected cash flows: tuo tel t=2 t=3 -545 +300 +200 +100 What is the Internal Rate of Return (IRR) of this project (to the nearest percent)? As judged by the IRR method, is this a good project or a bad project? Briefly justify your