The company decides to raise the equity required by issuing common stock onto the share market. The company is listed on the stock exchange with a value equal to the volatility of the stock market. The company expects to maintain the existing capital structure at a risk free rate of 5% and a risk premium of 8%. Issuing the stock generates a cost of funding the equity of 6%. It is estimated that the annual cash flow generated will be $100k for the first five years increasing to $150K in subsequent years for the remainder of the project. The corporate tax rate in Australia is 30%. The capital structure is such that the company has a 25% debt ratio. The cost of the debt capital is 9% whereas the cost of funding the debt raised is 4%. a) Calculate the WACC. b) Carry out an NPV of the project