A firm needs to purchase an office equipment for its new project. The total cost of the equipment is $1,000,000. By increasing employee productivity with this equipment, it is estimated that the firm will save costs by $256,000 annually for 10 years. This equipment is 100% depreciated in the straight line method and can be sold at $30,000 after 10 years. No additional net working capital is needed. This firm has 1 million shares of stocks outstanding, and the stock sells for $25 per share. This firm also has 50,000 shares of bonds outstanding whose face value is $1,000, (annual-paying) coupon rate is 10 percent, years to maturity is 15 years, and current market price is 95 percent of par. The firm's beta is 1.5, the risk-free interest rate is 5 percent, and the market expected return is 15 percent. Assume the firm's tax rate is 39 percent. (a) (4 points) What are the weights of debt and equity, respectively? (b) (4 points) What are the cost of equity and the (approximate) cost of debt? Note: For the cost of debt, use the approximate way to obtain cost of debt (c) (3 points) What is the weighted average cost of capital? (d) (6 points) What is the NPV of the proposed project? Acceptable