Diamodis, Inc. has an optimal capital structure of 65% debt and 35% equity. The firm's bonds, which have a $1000 par value, a coupon rate of 11.25% (semi-annual payments), and mature in 18 years, currently trade in the bond market for $1128.00. Diamodis common stock sells for $91.73 per share. The company just paid a dividend of $14.35 per share (i.e., Do = 14.35) and future dividends are expected to grow at a rate of 4.5% per year forever. Diamodis, Inc.'s marginal tax rate is 30%. Based on this information, the weighted average cost of capital (WACC) for Diamodis, Inc. is %. Year 0 1 2 3 4 Annual Net Cash Flow ($2,200,000) $350,000 $350,000 $350,000 $375,000 $375,000 $375,000 $400,000 $400,000 $400,000 5 6 7 8 Bonbelo's weighted average cost of capital is 8.35%. What is the IRR of this project? 1) 8.35% 2) 10.38% 3) 7.98% 4) 11.60% 5) 9.25%