For a publically traded firm, assume CFFA = $100,000,000 for 2017. The firms annual growth rate in its CFFAs is 4%. The company employs three major capital components (equity, debt, and preferred stock) to finance itself. The company is targeting a distribution in the three capital components of Ws= 40%, Wd= 55%, Wps= 5%. Last periods dividend was $4.00 and is growing at a constant rate of 3.5%. Simultaneously, in the stock market, the E(Rm) = 8%, Rf=3%, pfirm,M =.37 and qm=.35, Po=$35. The preferred stock for firm has a dividend of $12.00 and it is trading at $120. In thousand dollar units, firms with comparable risk have outstanding 10-year, 10% coupon debt (compounded annually) that is trading at $790. LMNO sees 10-year debt as their preferable timeframe for a debt issue. Finally, the firm marginal tax rate is 30%. First, find the firms WACC? Second, the firm is thinking about taking on a project which will require a $10,000,000 investment. The expected cash flows from this project to the firm are:

Period	Net Flow to Firm in Dollars
1	$1,000,000
2	$2,000,000
2	$2,500,000
4	$3,000,000
5	-$2,000,000
6	$3,000,000
7	$2,000,000

Should the firm take on this project? Teach the concept(s).