Evaluate the following investment project:

- Initial Investment = $ 30 million - Useful life = 7 years - Salvage value = $ 3 million - Net Cash Flows: Years 1-7: $ 9 million The capital structure of the company requires financing: 40% with long-term debt through a bond, and 60% with its own capital, starting with Retained Earnings and if necessary, carry out a new share issue which will cost 3% more than Retained Earnings. Some additional information:

- Corporate tax rate (ISR) = 30%. - Retained earnings: $ 10 million - You can issue bonds for up to 50 million: The cost of the bond is 12%. - The dividend authorized to pay next year is $ 4.00 per share, having grown at 5% per year and is expected to continue at this rate. The current share price is $ 36.00 - You can make a New Issue of Shares for up to 20 million.

a) What is the company's WACC?

b) What is the present value of the cash flows