A firm is considering a new project which would be similar in terms of risk to its existing projects. The firm needs a discount rate for evaluation purposes. The firm has enough cash on hand to provide the necessary equity financing for the project. Also, the firm has 1,000,000 common shares outstanding with a current market price of GH11 per share. Next year's dividend is expected to be GH1 per share and the firm estimates dividends will grow at 5% per year for the next several years. The firm also has 150,000 preferred shares outstanding with a current market price of GH10 per share. Dividend of GH0.9 per share is paid on preferred stock. The firm has a total of GH10,000,000 in debt outstanding. The debt stock is currently valued at of GH9,500,000. The yield on the debt is 8%. The firm's tax rate is 20%. The project requires an initial capital investment of GH500,000. However, the project is expected to generate GH100,000 annually in perpetuity. Required: i. Calculate the WACC for this project? ii. Evaluate the project using NPV