Ramblin Wreck is a firm specializing in engineering components. The firm is publicly traded and is considering the following project:

The project will last 5.00 years with an annual cash flow of $40.00 million. The project will require an initial investment of $140.00 million

The firm must determine the cost of capital to evaluate the project. (The project is within the firm's normal activities)

Ramblin Wreck, Inc. Financial Data:

STOCK DATA:

Current Price Per Share$28.00

# of Share 2,000,000

Book Value $50,000,000

BOND DATA:

Current Price Per Bond $929.00

# of bonds 20,000.00

Annual Coupon Rate 8.00%

Face Value Per Bond $1,000

Maturity 10 years

The risk free rate in the economy is currently 2.00%, while investors have a market risk premium of 8.00%. Ramblin Wreck, Inc. has a beta of 1.47. The tax rate is 38.00%.

What is the WACC for the project?