= PowerPoint Presentation Class Example 4 Vapes Pty Ltd would like to invest in a project which has potential future cash flows of R 1,5 million. The company has an after tax cost of debt of 18%. The risk free rate is 12%, the market return is 15%, market premium is 3% and the company beta is 1,1. Required Calculate the discount rate (WACC) which the company should use to discount the future cash flows. You may assume the following in your calculation: Target capital structure is 60% equity. Tax rate 27% Connection Lost