Amrit Enterprises is an electronic company and it is always being the dream of Amrit to expand into the international market. He has consulted a market research firm and the firm has done the study and is considering an expansion into international markets. He is planning to invest 20 million Rupees into this expansion project. And it is anticipated that he will be earning 4 million every year for 10 next years. You are Amrit best friend as a best friend it is your duty and your responsibility to also help him understand and help you make the right decision on the expansion project. Amrit has shared with you that the target debt-equity ratio of the firm is 1:1 and you have helped him to calculate the cost of equity of the firm and it is now 16.9% p.a. Whereas it's the pre-tax cost of debt is 14% The flotation cost of equity is 12%; this is the cost of issuing new equity for expansion project The flotation cost of debt is 2%. Required. (3*5=15) (i)To find out the Weighted Average Cost of Capital(WACC)? (ii) Find the present value of the future cash flow of the project using WACC as the discounting rate? (iii)Give your opinion of the acceptance or rejection of expansion?