Attached below is the solution hut i dont understand it. pls explain :)

How would you respond to someone who argues that if Megacorp is considering a project, in its usual line of business, which will be financed entirely using a new bond issue, the cost of debt is the appropriate hurdle rate for this project? Explain. 5.4 This is incorrect as the project must earn a return at least as high as the overall weighted average cost of capital of the firm as its risk is similar to the overall risk of the firm. How it is eventually financed is not relevant to the capital budgeting decision. rection 4