App4Data has become a very successful company - consistently looking to expand via acquisitions and expansion projects. App4Data needs to establish an acceptable return on its capital investments. The common stock of App4Data Inc. has a beta of 0.8. the Treasury bill rate is 4% and the market risk premium is estimated at 7%. App4Data's capital structure is 30% debt paying a 5% interest rate, and 70% equity. 1. What is App4Data's cost of equity capital (from CAPM) and its WACC? App4Data's tax rate is 35% 2. One project in particular AppData is evaluating has an internal rate of return of 12%. Should it accept the project? Why or why not? 3. The project will generate a cash flow of $100,000 per year for 7 years. What is the most App4Data would be willing to pay to initiate the project