Hotel DelRay New Property Management System (PMS) Acquisition & Installation Project Capital Acquisition and Allocation & Estimation of the Cost of Capital (WACC) After-tax Cost of Debt M 1000 1,597 P.. 1,577 C 150 7% Ka 4% Cost of New Retained Earnings (Internal Common Equity) do 0.2 d, 0.22 P 56 10% K 10% Cost of External Equity (New Common Stock issuances) 39 Pret 37 do 1.6 d, 1.712 7% K 12% The Cost of Capital (WACC) k 8.25%