Royal Airship Works plans to invest 1 billion to design and develop an airship, designated R101, to fly from London to Karachi. The capital necessary to build the airship will be made up of 60 percent equity and 40 percent debt. The firms before-tax cost of debt is 8 percent, while its cost of equity is 12 percent. The appropriate tax rate is 30 percent. What will be Royal Airship Works WACC for this project?

Group of answer choices

11.24 percent

None of these are correct.

10.30 percent

12.18 percent

9.44 percent