Qualcomm is looking to invest in a project. In order to do this, they require capital and they are concerned about how much it will cost to raise this capital. Currently, the company has 64.36 million Class A shares and 282.64 million Class B shares, they are priced at $68.73 and $63.15 per share respectively. The company also has 3 types of bonds still outstanding a bond with a YTM of 5.00% at a market value of $1651.51 million, another with a YTM of 6.58% with a market value of $2160.23 million, and finally a third with a YTM of 12.00% with a market value of $2723.90 million. The risk free rate of the market is 5.15%, and the market risk premium is 3.82%. The beta of Qualcomm is 2.58 and the tax rate is 36.10%. What is the company's cost of capital?

Part B: the three projects are expansion projects that require varying investment totals. The first project costs $225000.00 and would generate a yearly profit of $68000.00 and will last for 9.00 years. The second project costs $298000.00 but will generate a yearly profit of $72000.00 and will last for 11.00 years. Finally, the third project will cost $358000.00, generate a yearly profit of $75000.00 and will last for 16.00 years. The CFO wants your help in determining which project to choose.

Which project is the best investment for Qualcomm?