a) The capital structure of Jack's Construction Ca consists of debt and equity. The firm has 100,000 bonds outstanding that are selling at par value. The par value of each bond is exist1,000. Bonds with similar characteristics are yielding a before-tax return of 8 percent. The company also has 10 million shares of common stock outstanding The stock has a beta of 1.5 and sells for exist30 a share. The return on U.S Treasury hills is 4 percent and the market rate of return is 10 percent Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital? b) Jack is considering a five-year project that is expected to generate the following net (or total) after-tax cash flows. The initial investment of the project is exist12,000,000 The project has no net working capital requirement and no salvage value. Assume that the project has the same risk as the firm overall. Find the net present value (NPV) of the project