WACC calculation h. Calculate the firm's average cost of equity by averaging the answers in parts (f) and (g). (1 mark) ABC's capital structure contains only debt and equity. Given that its debtequity ratio is 0.8, its cost of debt is 10%, and its marginal tax rate is 35%, calculate the firm's WACC using the cost of equity calculated in part (h). (2 marks) NPV calculation k. The firm has a project with an initial cost of $1 million, and annual cash savings of $300,000 for the next five years. The risk adjustment for this project on the WACC is +5%. Calculate the net present value of this project using the WACC calculated above. (4 marks) Should the firm go ahead with the project? (1 mark)