Exercise #1: Regal Industries has the following capital structure. Its corporate tax rate is 35%. Security Book Value Market Value Weight Cost Debt $18 million $20 million 6% Common stock $27 million SO million 14% A. Compute WACC = B. Regal is evaluating a project costing $48,000 which will generate $10,000 for 6 years. It will require an increase of $2,000 in NWC at the outset, but no recapture. Should Regal accept the project? NPV = $ Accept? Exercise #2: Thrifty Inc. has $6,000,000 in long-term debt. The interest rate is 8%; the tax rate is 40%. The PV of the debt tax shield is $