The estimated financial data about the proposed investment is provided as follows:

$$ The firm's preferred stock pays a constant annual dividend of $$2\mathrm{.}0$ per preferred share and is currently selling for $$20$ per preferred share.

$$ The firm is expected to pay a common stock dividend of $$2\mathrm{.}5$ next year, with anticipated growth of $5\%$ each year thereafter. Currently, the common stock is selling at a price of $$24.$

$$ The firm has $8$ year bonds outstanding with a coupon rate of $10\%,$ paid annually, face value is $$100.$ The bonds are currently selling at price of $$98\mathrm{.}72.$

$$ The firm is currently being financed with $$15,000,000$ of debt, $$25,000,000$ of common equity, and $$10,000,000$ of preferred stock. The new project investment has the same risk as the company$$s$.$

$$ The project requires the use of equipment values at $$4,000,000$ with straight$-$line depreciation method for $4$ years.

$$ You anticipate that the equipment can be sold in four years for $$1,800,000.$

$$ Anticipated sales are $1,000,000$ units per year based on a sale price of $$11$ per unit. The cost of producing

each unit is $$8\mathrm{.}50.$

$$ If the project is accepted, the firm will need to hire an additional manager with an annual salary of $$80,000.$

$$ Total market research $($information gathering for project analysis$)$ expenses were $$26,000.$

$$ If the project is accepted, the firm will have to lose net other source of $$1,000,000$ income each year. The firm's marginal tax rate is $30\%.$

Requirements:

a$.$ What is the WACC of this project?

b$.$ Calculate the NPV of this project and answer that whether the project can be accepted?