A company$$s directors are considering an investment in a major project. The

following criteria for the investment are under consideration:

The project will be funded using debt that will have a $10\%$ post$-$tax rate of

interest.

The project$$s internal rate of return is $9\%.$ The company has a standard hurdle rate

of $12\%.$

The project$$s estimated beta coefficient indicates that the required rate of return is

$14\%.$

The company$$s historical weighted average cost of capital is $16\%.$

What is the lowest rate of return that the company can accept in order to maintain

shareholders$$ wealth?

$10\%$

$12\%$

$14\%$

$16\%$