- Suppose Anheuser Busch is considering introducing a new ultra-light beer with zero calories to be called BudZero. The risk of the project is judged to be similar to the risk of the company. - The cost of bringing the beer to market is $200 million, but Anheuser Busch expects first-year incremental free cash flows from BudZero to be $10 million and to grow at 3% per year thereafter. - The common stock of Anheuser has a beta of 0.33. The treasury bill rate is 4% and the market risk premium is esstimated at 5 percent. BCCI's capital structure is 18% debt paying a 5.6% interest rate, and 82% equity. Tax rate is 0%. - 1. What is Anheuser's WACC? - 2. Should Anheuser Busch go ahead with the project