Question 3 Clifford Chance is a large UK firm with the before tax cost of debt of 10. The free rate of interest on 10 year Treasury bonds is 496. The expected return on the market portfolio is 8 Alter effective taves, Clifford Chance's effective tax rate is 20%. Its optimal capital structure is 70% debt and on equity Q3- Cufford Chances beta is estimated at 1.5, what is its weighted average cost of capitalimatla) & Save Unanswered Q3-b This firm has collected 50,000 GBP from U.K. stock and bond markets by using the weighted average cost of capital calculated in step (a). It has invested this fund on a 3-year project in U.K. and ed the cash flows of 10,000, 15,000, and 20,000 for the first second, and third years of the project, respectively. Calculate Net Present Value of the project and provide a decision whether this project is acceptable for investment? (6 marks)