$***$Please CALCULATE the WACC. $($Please include the steps, THANK YOU$)$

The R&D department of your company has just developed a new type of environmentally friendly electric light source called the EnviroLight. The group spent $$800,000$ developing this product and the Marketing Division has spent another $$110,000$ to assess the market demand. They believe that the EnviroLight has superior brilliance and have a significant longer life than conventional lightbulbs, and will have great market appeal at a competitive price of $$27.$ The Marketing Division estimates the following demand for the EnviroLight:

$\backslash$table$[[$Year $1-2025,150,000$ units$],[$Year $2-2026,220,000$ units$],[$Year $3-2027,280,000$ units$],[$Year $4-2028,300,000$ units$]]$

After that time they believe there would be no more sales of the product as newer products become available. The EnviroLight is expected to cost $$14$ each to manufacture $($variable cost$).$ In addition, fixed production costs are estimated at $$1\mathrm{.}5$ million per year. The manufacturing equipment necessary to produce the lights costs $$2,750,000$ to buy and would be depreciated at a $30$ percent CCA rate. The cost $\{$of installing the equipment is $$350,000,$ which will be covered by the supplier. The manufacturing equipment is expected to have salvage value equivalent to the ending balance of the UCC at the end of year four $($no income tax effects apply$).$ The investment in net working capital is estimated to be $15\%$ of the change in sales. The NWC will be recovered at the end of the project. The company's marginal income tax rate is $25$ percent.

Inflation adjustment: Inflation is expected to be $2\%$ per year, starting in the second year of the project $($Year $2-2026).$ Price per unit, variable cost, and fixed cost are adjusted by inflation.

The company has $1,000,000$ common shares outstanding that are currently trading at a price of $$55$ each; $100,000$ preferred shares with a market value of $$51$ each; and $60,00010-$year, $$1,000$ face value bonds that pay an annual coupon of $7\%$ and are currently trading for $$1,150.$

The company's common stock has a beta of $1\mathrm{.}50.$ The risk free rate is $3\%$ and the expected market risk premium is $6\mathrm{.}75\%.$ Preferred stockholders receive $$1$ per quarter as preferred

dividends. The project is considered by the financial department to b

The R&D department of your company has just developed a new type of environmentally friendly electric light source called the EnviroLight. The group spent $$800,000$ developing this product and the Marketing Division has spent another $$110,000$ to assess the market demand. They believe that the EnviroLight has superior brilliance and have a significant longer life than conventional lightbulbs, and will have great market appeal at a competitive price of $$27.$ The Marketing Division estimates the following demand for the EnviroLight:

$\backslash$table$[[$Year $1-2025,150,000$ units$],[$Year $2-2026,220,000$ units$],[$Year $3-2027,280,000$ units$],[$Year $4-2028,300,000$ units$]]$

After that time they believe there would be no more sales of the product as newer products become available. The EnviroLight is expected to cost $$14$ each to manufacture $($variable cost$).$ In addition, fixed production costs are estimated at $$1\mathrm{.}5$ million per year. The manufacturing equipment necessary to produce the lights costs $$2,750,000$ to buy and would be depreciated at a $30$ percent CCA rate. The cost of installing the equipment is $$350,000,$ which will be covered by the supplier. The manufacturing equipment is expected to have salvage value equivalent to the ending balance of the UCC at the end of year four $($no income tax effects apply$).$ The investment in net working capital is estimated to be $15\%$ of the change in sales. The NWC will be recovered at the end of the project. The company's marginal income tax rate is $25$ percent.

Inflation adjustment: Inflation is expected to be $2\%$ per year, starting in the second year of the project $($Year $2-2026).$ Price per unit, variable cost, and fixed cost are adjusted by inflation.

Information about the firm's cost of capital $-$ WACC

The company has $1,000,000$e as risky as the company $($assumption: the project has the same risk and leverage as the company$).$