A. a manufacturing company has 20,000 bonds outstanding with a 8% annual coupon rate, 9 years to maturity, a $2,000 face value, and a $2,100 market price. Yield to Maturity (YTM) is 5.48%. The companys 600,000 shares of common stock sell for $35 per share and have a beta of 1.7. The risk-free rate is 5%, and the market return is 13%. Assuming a 40% tax rate, what is the companys WACC?. Management has decided to add an additional 2.5 percent to the company's overall cost of capital when evaluating a production expansion project. The project requires a capital investment of outlay of $72,000 and projected cash inflows of $27,000 in year one, $38,000 in year two, and $40,000 in year three. The firm has a flotation cost of debt of 8 percent and a flotation cost of equity of 11.5 percent. What is the projected net present value of the new project?Required to answer. Multi Line Text.