Pure Play Approach Peach Computer Company is headquartered in Vancouver with offices in Calgary, Toronto, Ottawa, Montreal and Halifax. The book value of Peach's outstanding debt is $10 million. Currently, the debt is trading at 90% of book value and is priced to yield 12%. The 1 million outstanding shares of Peach stock are selling for $20 per share. Peach Computer has a beta of 1.50. The current risk-free rate is 9.5%, and the market risk premium is 7%. The tax rate is 40%. Calculate Peach's weighted average cost of capital. Peach is considering three independent capital budgeting projects. Use the information below to analyse them. Which one(s) do you recommend and why? Project Life Annual Cash Flows Cost Beta 10 YEARS $ 10 Million $ 50 Million 0.00 B 5 YEARS $ 12 Million $ 35 Million 1.50 15 YEARS $ 7 Million $ 25 Million 1.80