Part A: (15 marks) Suppose you have been hired as a financial consultant to Mega Electronics Inc. (MEI), a large, publicly traded firm. The company is looking at setting up a manufacturing plant overseas to produce a line of New Electronic Device (NED). This will be a five-year project. The initial cost of this plant will be $47 million. The following market data on MEIs securities are current and MEIs marginal tax rate is 37%: Debt: 210,000 6.4% coupon bonds outstanding, 25 years to maturity, selling for 107% of par; the bonds have a $1,000 par value each and make semiannual payments Common Stock: 8.3 million shares outstanding, selling for $68 per share; the beta is 1.2 Preferred Stock: 450,000 shares of 4.5% preferred stock outstanding have a par value of $100, selling for $81 per share Market: 7% expected market risk premium; 3.45 % risk-free rate What would be the required rate of return or cost of capital for this project if you categorize it as a Very High Risk one and adjust WACC of MEI by 7.5%?