Can you please help me understand this problem?

6 Westcon is considering building a facility to tap thermal energy using wind power. Part of the project's cost, $750,000, can be financed with a loan from the Federal Energy Commission at the below-market rate of 5%. The remainder, $250,000, can be financed with an industrial revenue bond at 10%. Current debt rates for Westcon are 15%. The project should generate pre-tax net profit of $425,000 a year for 10 years. Westcon has a 40% tax rate, and the D/E ratio is 0.50. Westcon estimates that the project beta is 1.50 and forecasts a risk-free rate of 10% for the life of the project. The market rate is estimated to be 20%. a. Should Westcon undertake the project? b. Assuming the project is of the same risk as Westcon itself, would the project be accept- able withour the subsidies? Explain