Question: Firecracker Corp. is evaluating a risk - free project that requires $ 3 5 M investment. The firm's cost of debt is 1 0 %

Firecracker Corp. is evaluating a risk-free project that requires $35M investment. The firm's cost of debt is 10%. The cost of equity is 17%. The WACC is 12%. The risk-free rate is 5%. The tax rate is 0. Whats the appropriate cost of capital for the project?

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