FINA Corp. has been producing consumer electronics. Currently, FINA is considering to enter a new industry, office supplies. FINA Corp's beta without the new project is 1.5. The market risk premium is 6%. The average risk free rate in the past year is 5%, while the current risk free rate is 3%. The total shares outstanding of FINA is 10 million. The stock price now is $20 per share. Tax rate is 20%. Cost of debt for FINA is 4%. The value of debt is $100 million. Following three firms are in the new industry that FINA wants to enter. Firm A is in both office supplies and consumer electronics. Both Firm B and C are in office supplies only. What is the WACC of the project to enter office supplies market? If the IRR of the new project is 15%, should FINA take the project?

FINA Corp. has been producing consumer electronics. Currently. FINA is considering to enter a new industry, office supplies. FINA Corp's beta without the new project is 1.5. The market risk premium is 6%. The average risk free rate in the past year is 5%, while the current risk free rate is 3%. The total shares outstanding of FINA is 10 million. The stock price now is $20 per share. Tax rate is 20%. Cost of debt for FINA is 4%. The value of debt is $100 million. Following three firms are in the new industry that FINA wants to enter. Firm A is in both office supplies and consumer electronics. Both Firm B and C are in office supplies only. What is the WACC of the project to enter office supplies market? If the IRR of the new project is 15%, should FINA take the project