Mistletoe Unlimited has 1,100 bonds outstanding that are selling for $992 each. The bonds carry a 6.0 percent coupon, pay interest semi-annually, and mature in 7.5 years. The company also has 9,500 shares of 5% preferred stock at a market price of $40 per share. This month, the company paid an annual dividend in the amount of $1.20 per share. The dividend growth rate is 5.0 percent. The common stock is priced at $30 a share and there are 34,500 shares outstanding. The company is considering a project that is equally as risky as the overall company. This project has initial costs of $630,000 and operating cash flows of $150,000 a year for the next 10 years and salvage value of $10,000 at the end of 10 years. No change in the NWC. The project will be depreciated straight-line to zero over the project%u2019s 10-year life. The tax rate is 34%.

A. (10 points) What is Mistletoe%u2019s weighted average cost of capital?

B. (4 points) What is the net present value (NPV) of this project? Should you accept the project? Explain why.

Can you please show your work?