A firm$$s bondholders are earning a $7\mathrm{.}5\%$ return and the firm$$s stockholders are earning a $15\%$ return. The firm$$s financing is $35\%$ debt and $65\%$ equity. The firm$$s average tax rate is $27\%.$

This firm is considering investing in a project that will yield a $13\%$ return. Should the firm invest in this project? Explain why or why not.

Group of answer choices

Yes, invest the project because the WACC is less than the yield of the project.

Yes, invest in the project because manager think the project would be fun.

No$,$ don't invest in the project because the WACC is higher than the yield of the project.

No$,$ don't invest in the project because the mangers think it will be difficult.