The common stock of Buildwell Conservation & Construction, Inc. (BCCI), has a beta of .8. The Treasury bill rate is 4% and the market risk premium is estimated at 7%. BCCI's capital structure is 30% debt paying a 5% interest rate, and 70% equity. What is BCCI's cost of equity capital and its WACC? Buildwell's tax rate is 35%. Should BCCI accept a project with an IRR of 12%? Explain why.