Rowntree PLC Inc. is considering a new investment opportunity to grow revenues. The expected return ftom the project is expected to be 12%. Rowntree has 3000, 8%, 20yr, annual bonds outstanding, curretly trading at $913 per bond. The preferrad shares are trading at $54 per share and pay a $5.00 dividend annually, 100,000 shares outstanding . Rowntree has 3,000,000 common shares outstanding trading at $14 pershare and has a required return of 14%.The tax rate is 30%. Calculate the WACC for Rowntree and decide if they should acccept the new project?

A.

13.07%, REJECT

B.

13.07%, ACCEPT

C.

12.56%, ACCEPT

D.

12.56%, REJECT