BD Corporation has 8,000,000 shares of common stock outstanding, 800,000 shares of preferred stock outstanding and 187,500 bonds outstanding. The common stock currently sells for $37.50 and just paid a dividend of $2.00 per share and is expected to grow at a constant rate of 10% and has a beta of 1.30. The preferred stock currently sells for $62.50 per share and pays a dividend of $4.00. The bonds have a coupon of 7%, compounding semiannually, 15 years to maturity and sells for 80% of par. The expected return on the market is 13% and the risk-free rate is 5%. BD Corp. has a tax rate of 34%. Calculate the weighted average cost of capital (WACC). T You will use this WACC rate for the upcoming NPV calculation for Average Joe's Motor Company. Group of answer choices 11.9076% 11.7676% 12.0376% 12.8800% Average Joe's Motor Company plans to sell robots for the manufacturing of automobiles to the Japanese auto makers. Two years ago, Average Joe's Motor Co. hired an outside consultant to look into robotic manufacturing at a cost of $200,000. They project sales revenue to be $10,000,000 per year. The robotic manufacturing equipment will initially cost $10,000,000 and require $750,000 to install. The robotic manufacturing equipment will be depreciated using a 3-Year MACRS schedule. The firm expects to be able to sell the robotic manufacturing equipment for $3,000,000 at the end of the 2nd Year. There will be an initial savings of $500,000 for net working capital. Variable costs are $3,000,000 and fixed costs are $2,500,000 per year. Assume a 30% tax rate. Use the Weighted Average Cost of Capital (WACC) from the BD Corporation question for your discount rate. What is the Net Present Value (NPV) of this project? Should we accept/reject this project: Group of answer choices -$1,151,644.502/Reject -$2,151,644.502/Reject $19,348,355.50 / Accept -$1.133487.908 / Reject