Assume that the firm is 30% financed by debt and 70% financed by equity. Its cost of debt is 7% and the cost of equity is 18%. The tax rate is 40%. What is the firm's WACC? A. 9.36% B. 8.75% C. 13.86% D.14.70% QUESTION 2 You consider undertaking the research project. It will increase sales by S200K per year starting next year and its life is 15 years. The maintenance cost is $60K and the depreciation of the equipment is 20K per year. The tax rate is 40% and there are no changes in net operating working capital. What is the annual operating cash flow from the project? A. $100,000 B. $92,000 C. $120,000 D. $72,000