A company is considering two mutually exclusive projects, the company's required return is 8 percent and they do not have any capital constraints. Based on the profitability index, what is your recommendation concerning these projects? Project Year Cash Flow -$38,500 $20,000 2 $24,000 Project B Year Cash Flow 0 -S42,000 $10,000 2 $40,000 1 1 You should only accept project B since it has the largest Pl and the Pl exceeds 1. You should accept both projects since both of their Pls are positive. You should accept both projects since both of their Pls are greater than 1 O You should accept project A since it has the higher PL Neither project is acceptable. Your company is estimating its WACC. Its target capital structure is 35 percent debt, 10 percent preferred stock, and 55 percent common equity. Its bonds have a 10 percent coupon, paid semi-annually, S1000 par value current maturity of 8 years, and sell for $950. The firm's preferred stock sell for $75 and pay quarterly dividend of $2. This company's beta is 1.25, the risk-free rate is 4 percent, and the expected market return is 9 percent. The firm's marginal tax rate is 30 percent. What is the WACC of this company? O 9.39% O 12.31% O 11.86% O 6.87% O 7.84%