After spending $3 million on research, Better Mousetraps has developed a new trap. The project requires an initial investment in plant and equipment of $5 million. This investment will be depreciated straight-line over five years to a value of zero, but, when the project comes to an end in five years, the equipment can in fact be sold for $250,000. The firm believes that working capital at each date must be maintained at 10% of next years forecasted sales. Production costs are estimated at $2.50 per trap and the traps will be sold for $5 each. (There are no marketing expenses.) Sales forecasts are given in the following table. The firm pays tax at 35% and the required return on the project is unknown but will be similar to the average project for the firm.

Year	0	1	2	3	4	5
Sales (units)	0	500,000	600,000	1,000,000	1,000,000	600,000

Use the information below to calculate the firm WACC. Round to two decimal places, for example 20.00%.

Equity
Mkt Value	$50,000,000
Book Value	$5,000,000
Shares	1,000,000
Price	$50.00
Div	$1.50
Beta	2
Mkt Risk Premium	6.2%
Risk Free Rate	3%

Debt
Mkt Value	$50,000,000
Book Value	$50,000,000
Bonds Outstanding	50,000
Price	$100
Coupon (semi-annual)	8%
Maturity	10