Sparrow Inc. uses 62.5 percent common stock and 37.5 percent debt to finance their operations. The cost of debt is 10 percent, and the cost of equity is 15 percent. The firm is in the 30% tax bracket. The company is considering an expansion project that will cost $1 million. The project will generate after-tax cash flows of $250,000 per year for 7 years. What is the WACC, and should the company invest in this project? 10%: Accept the project 12%; Accept the project 12%: Reject the project 10%; Reject the project