A firm has a total market value of $100 millions. The market value of debt is $40 millions (that is 40% debt)and that of equity is $60 millions (That is 60% equity). The before tax cost of debt is 10% and the cost of equity is 15%. Calculate the weighted average cost of capital: (WACC) (Assume tax rate T=21% ) 13.0% 12.16% 11.8% 13.85% Which of the following would be a "relevant" discount rate for a "new product development project" WACC WACC +10% WACC - 2% WACC +2%