A company would like to figure out if an $6-$year project is worth it$.$ The company is in the $34\%$ income tax bracket.

Here's what else is known:

If it doesn't use a loan Project's initial cost: $$800,000$

Project's after$-$tax cash flow: $$130,000$ per year

Beta of the company's equity $=1\mathrm{.}2$

Required return on the company's equity $=11\mathrm{.}40\%$

If it uses a loan $40\%$ of the initial cost would be covered with an interest$-$only riskless loan

Even more information:

Treasury bill rate $=3\%.$ It is a proxy for the riskless asset.

Market portfolio expected return $=10\%$

The company would like to use the WACC approach to evaluate this levered project. According to this approach:

RWACC $=($Weight of levered equity$)$ x $($Cost of levered equity$)+(1-$ TC$)$ x $($Weight of debt$)$ x $($Cost of debt$)$

In this formula, weight of levered equity $=$

$[$ Select $]$

$,$ cost of levered equity $=$

$[$ Select $]$

$,$ TC $=$

$[$ Select $]$

$,$ weight of debt $=$

$[$ Select $]$

$,$ and cost of debt $=$

$[$ Select $]$

$.$ Increase the decimal places in all intermediate steps to $6$ or even more. The more the better! Only round your final numeric answers to TWO decimal places.

The resulting RWACC $=$

$[$ Select $]$

$.$

HINT #$1$: You won't need some of the numbers that are given. $$

HINT #$2$: Use the "debt$-$to$-$BOOK$-$value$-$of$-$equity method" $($which is much easier!$)$ rather than the "debt$-$to$-$MARKET$-$value$-$of$-$equity method" in order to calculate the debt$-$to$-$equity ratio, if needed.A company would like to figure out if an $6-$year project is worth it$.$ The company is in the $34\%$ income tax bracket.

Here's what else is known:

Even more information:

Treasury bill rate $=3\%.$ It is a proxy for the riskless asset.

Market portfolio expected return $=10\%$

The company would like to use the WACC approach to evaluate this levered project. According to this approach:

Weight of levered equity