Graph the WACC on a graph allowing the weights of debt and equity to shift from 0 to 100%. The x axis should be the weights and the y should be the WACC. Use increments of .05.

Now allow the tax rate to go to zero, what happens to your graph (paste it here).

Project -$17,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,000.00 $0.00 $0.00 $0.00 $20,000.00 0 $10,000.00-$20,000.00-$15,000.00 1 $700.00$0.00 $770.00$0.00 $847.00$0.00 $931.70$0.00 $1,024.87$0.00 $1,127.36$0.00 $1,240.09$0.00 $1,364.10$0.00 $1,500.51$0.00 $1,650.56 $40,000.00 $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00 $10,000.00 $0.00 $0.00 $5,000.00 $20,000.00 Weight of Debt Weight of Equit 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85 0.9 0.95 4 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 10 MIRR = IRR = NPV = Cost of Equity = Cost of Debt Tax Rate = weight of Equity = Weight of Debt- WACC = 10% 5% 50% 50% 50% 6.25%