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Bob's Taco Shop is considering a project that will generate a cash inflow of $24 million in year one. The project's cash flow will then

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Bob's Taco Shop is considering a project that will generate a cash inflow of $24 million in year one. The project's cash flow will then grow at 4 percent per year in perpetuity The firm finances 75 percent of all assets with debt, and the after-tax cost of debt is 5 percent. The firm estimates the cost of equity is 14 percent. Calculate the firm's WACC and then use the WACC to determine the maximum amount the firm should spend to undertake this project

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