A firm is considering the purchase of an expensive piece of equipment. They plan to use the Net Present Value method to determine whether or not to accept the project. They could issue bonds in the market. The current YTM for the corporation would be 4.8%. The growth rate of the firm's dividend will be 3% per year over the next five years. Management is trying to determine the appropriate required return to use in the NPV calculation. Which method would be most appropriate? The Weighted Average Cost of Capital should be calculated and used as the required return. The IRR of the firm should be used as the discount rate. The firm should use CAPM to estimate and then use the cost of equity The 4.8% yield on the bonds is the required return