XYZ Company has $2,000,000 of long-term debt outstanding. The bonds were issued at par and the price per bond is $990 with 10 years left to maturity. The bonds have a yield to maturity of 7 percent. The company has 23,760 shares of common stock outstanding with a book value of $2,500,000. The current market price of the stock is $125 per share. XYZ has a beta of 1.2, while 10 year Treasuries are yielding 4 percent and the market risk premium is 6 percent. XYZ's tax rate is 40 percent. What is XYZ's WACC? XYZ is contemplating a five year project with an initial cost of $500,000 and the following cash flows: Should XYZ invest in the project