Mobile One Inc. CFO is interested in calculating the weighted average cost of capital and the company has collected the following information:

The company's capital structure consists of $40$ percent debt and $60$ percent common stock.

The company has bonds outstanding with $15$ years to maturity. The bonds carrying a coupon rate of $11$ percent, maturity value of $$1,000$ and a current price of $$1,220$ per unit. Coupon payment are paid semi$-$annually.

Mobile One uses the Capital Asset Pricing Model to calculate the cost of common stock. Currently, the risk$-$free rate is $5$ percent and the market risk premium, $(k_M-k_{RF}),$ equals $6$ percent. Mobile One has a beta of $1\mathrm{.}60.$

The company's tax rate is $40$ percent.

a$)$ What is the company's after$-$tax cost of debt?

$(5$ marks$)$

b$)$ What is the company's cost of common equity?

$(2$ marks$)$

c$)$ What is the company's weighted average cost of capital $($WACC$)?$

$(3$ marks$)$

d$)$ Which of the following average project$/$s listed below, if any, should be selected, what will be the total investment $($in $ $)?$ Explain the basis of your selection.

$(2$ marks$)$

$\backslash$table$[[$Project$,$Expected Return $(\%),$Initial Investment $($$$)],[1,11\mathrm{.}85,3,000,000($no excel calculation please$)$