You operate a restaurant chain and are considering opening a new restaurant nearby $($you already own many other similar restaurants$).$ On average, your company is $60\%$ equity financed and $40\%$ debt financed, but you plan to finance this new restaurant entirely with equity. The risk free rate is $4\%,$ the market risk premium is $12\%,$ your return on debt is $6\%$ and your equity beta is $\mathrm{.}9.$ The company$$s tax rate is $25\%.$

Is the WACC the appropriate discount rate for this project? Why or why not?

What is $($numerically$)$ the appropriate discount rate for the project?