Glitter Inc. uses one$-$quarter common stock and three$-$quarters debt to finance their operations. The after$-$tax cost of debt is $6$ percent and the cost of equity is $12$ percent. The management of Glitter Inc. is considering an expansion project that costs $$1$ million. The project will produce a cash inflow of $$50,000$ in the first year and $$120,000$ in each of the following $10$ years $($i$.$e$.$ $$120,000$ in year $2$ through year $11).$ What is the WACC and should Glitter Inc. invest in this project?

WACC $=7\mathrm{.}5\%.$ Yes, because the NPV is $$187,265$

WACC $=10\mathrm{.}5\%.$ Yes, because the NPV is $$301,563$

WACC $=7\mathrm{.}5\%.$ No$,$ because the NPV is $-$$$187,265$

WACC $=10\mathrm{.}5\%.$ No$,$ because the NPV is $-$$$301,563$