Use the Following Information to Answer the Question(s)below

question 64

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metal is evaluating a project that requires an investment of $150 million today and provides a single cash flow of $180 million for sure one year from now.Rearden decides to use 100% debt financing for this investment.The risk-free rate is 5% and Rearden's corporate tax rate is 21%.Assume that the investment is fully depreciated at the end of the year.
-The WACC for this project is closest to:

• A)4.0%.
• B)5.0%.
• C)7.0%.
• D)8.2%.

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Definitions:

Payroll Items

Components that make up an employee's pay, including wages, salaries, bonuses, deductions, and taxes.

Employer Responsibility

The legal and ethical obligations that an employer has towards their employees, including providing a safe working environment, fair wages, and respecting labor laws.

Employee Responsibility

The duties and obligations employees have towards their employer and workplace.

Payroll Items

Components that constitute an employee's earnings and deductions, including salary, wages, bonuses, taxes, and benefits.