Arsen Coppornton is cersidering an investment in a new project with an urlevered cost of...

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Arsen Coppornton is cersidering an investment in a new project with an urlevered cost of copilal of 6.9%. Aden's marginal corpomte tax rate is 34 . a. Suppose Arden adpats is dobl corthuoully to mairtan a constant bebt equlty rate of 0.5 What is the approprale WACC for the new project? b. Suppose Arden aduuts its debt onon per year to mairtain a tonstant deti-equily rato of 0.5 . What is the agpropridte Wacc for the new propect noen? c. Suppose the propect has bree caeh lows of 5103 million per year, which are oxpected to decine by 2 ith per year What is the vilue of the propect in parts (a) and (b) now

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