Peacock has a target ratio of 7:2:3 for its common equity, preferred

stock, and long term debt. Its cost of equity, preferred stock, and long term debt

are 15%, 12%, and 7%, respectively. What is Peacock's WACC? If Peacock is offered

a project similar to its existing operation with the following estimated free cash

flow:

Year

0

1

2

3

4

5

CF

-10000 2000 2000 3000 3000 4000

Would Peacock accept the project?