$($CHAPTER $18)$

A company would like to figure out if an $6-$year project is worth it$.$ The company is in the $34\%$ income tax bracket.

Here's what else is known:

Even more information:

Treasury bill rate $=3\%.$ It is a proxy for the riskless asset.

Market portfolio expected return $=10\%$

The company would like to use the WACC approach to evaluate this levered project. According to this approach:

Weight of levered equity