A company is considering a project that requires an initial outlay of $785,000 and is expected to deliver $93,000 in unlevered free cash flow at the end of the first year, growing thereafter at 3% p.a. The company has a target debt-to-equity ratio (D/E) of 0.50 but the industry target D/E is 0.35. The industry average equity beta is 1.3. The market risk premium is 5% and the risk-free rate is 4%p.a. The company plans to finance the project at the company's own target D/E ratio. The yield on the company's borrowings is 6% p.a. which is equivalent to the average industry borrowing cost. The corporate tax rate is 30%. a) Calculate the company's levered cost of equity. b) Calculate the company's Weighted Average Cost of Capital. c) Calculate the NPV of the project and indicate whether the company should accept the project