Kenan Inc. has a target debt over equity D/E = 50% (D = net debt and E = market cap) for which its cost of debt is 6%. Kenans equity beta is 1.2 and it has a 30% corporate tax rate. The risk-free rate is 2% and the market risk premium is 6%. Kenan is considering the acquisition of plant and equipment to expand production. The project would cost $300m and give a $5m free cash flow next 5 years which would then grow at a rate of 2% annually in perpetuity. Kenan would finance the acquisition by issuing new equity. a. Estimate WACC. b. What is the NPV of the investment?