Kasbro nv, a company that is active in the toy industry, has optimized its capital structure: the company is financed 60% with equity and 40% with debt. Its market beta has been estimated to be 1.2. However, Kasbro nv considers executing a project in a-for the company new business, being the snack food business. The expected intemal rate of return (IRR) for the project is 16%. As Kasbro nv currently has no experience in this business, it decides to take a look at its competitors. Potatoes nv, a company that is active in the snack food sector and investing in similar projects, has a leveraged beta of 1.5. Potatoes ny has a capital structure consisting of 50% debt and 50% equity. The marginal tax rate of both companies is 40%. The risk-free rate is 7% and the market risk premium is 8%. Do you think the company should accept the project? Select the answer that comes closest. Yes, if after-tax cost of debt (k) 2 13.75% O No answer O No ololo Yes, if after-tax cost of debt (k) s 17.5% Yes, if after-tax cost of debt (k) s 13.75%