Amazon Properties Company is owned and operated as a private company in Jamaica called Amazon Ltd. You work as the Facilities Manager of a Sports Park owned by the company. The CEO of the company has asked you to evaluate whether Amazon Ltd. should embark on the expansion of the facility given there are plans by the Government to host Cricket World Cup in 2020. The project seeks to increase the number of seats by building 4 new box seating areas for VIPs and an additional 3,000 seats for the general public. Each box seating area is expected to generate $300,500 in incremental annual revenue, while each of the new seats for the general public will generate $4,300 in incremental annual revenue. The incremental expenses associated with the new boxes and seating will amount to 75 percent of the revenues in the first two years and 60 percent of revenues in the subsequent years. These expenses include hiring additional personnel to handle concessions, ushering, maintenance and security. The new construction will cost $15.3 million and will be fully depreciated (to a value of zero dollars) on a straight-line basis over the 5-year life of the project. The company will have to invest $1.5 million in additional working capital immediately, but the project will not require any other working capital investments during its life. This working capital will be recovered in the last year of the project. The company stock has a beta of 1.20. The expected return on the market is 8.0 percent and the yield on the risk-free asset is currently 6.0 percent. The CEO would like to know a fair rate which can be used to assess its cost of capital. You have therefore been asked to calculate the WACC for Amazon Ltd.