Question 8: A project has a single cash inflow at time 1 of $10,000. The firm requires a 12% rate of return to invest in this project. The cost of this project $8,500, but the firm must raise the capital for the investment. The cost of raising the capital is $350 plus 5% of the amount of capital raised (i.e. the commission is 5%). There are no taxes. a) Should the firm invest in this project? RSM 333H1F Final Exam - December 2017 Page 16 of 42 b) What rate of return would the project need to deliver for the firm to earn its 12% required rate of return