company is considering a diversifying project in the education industry. The project would require an investment of $350M today and generate expected free cash flows of $40M per year in perpetuity. The financing of this project would involve a target debt-to-equity ratio of 1.5 (fixed ratio) and a 7.5% cost of debt. The corporate tax rate is 40%, which is the only relevant market imperfection. IQ Inc is a public firm in the education industry. IQ has currently a target debt-to-equity ratio of 1, with a cost of debt of 6% and a cost of equity of 12%. Using appropriately IQs information, suggest a discount rate (rWACC) for the projects free cash flows that reflects the projects financing and business risk