Vortex industries is considering a new project and they need an estimate of WACC to perform thevaluation using the IRR method. This is what is known about the company:Current stock price is $45. The firms beta is 1.4. Current risk-free rate is 4% and the expectedreturn on the market is 11%. The next dividend is expected to be $1.10. The firms expected growthrateis 3%.There are 100,000 stocks outstanding.(Hint: use yourbest estimateof the cost of equity forWACC estimation, that is, find the average of the two models).The firm also has some debt outstanding with par value of $1,000. Current quote is 115. The bondspay 7% coupons semiannually and there are20,000 bonds outstanding. The bonds mature in 25years. The firms tax rate is 21%.Finally, the firm has 10,000 preferred stocks outstanding with the price of $12 each and a dividendof $1.10.Question 1. What is the firms WACC?Question 2. Should you accept the project if the IRR is 18%?