Company A Company B

Market Value of Equity $$100,000$ $$200,000$

Market Value of Debt $$300,000$ $$200,000$

Cost of Equity $10\%12\%$

Cost of Debt $2\%1\mathrm{.}5\%$

Tax Rate $25\%35\%$

Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of $5\%?$