Jackson's Plastic is considering purchasing a new plastic mber for one of its workhops. The price of the mber is $5400,000$ and lackson's plans to borrow $100$ s of the needed funds from a local bank at $8\%$ after$-$tax cost of debt. Jackson's WACC and cost of equity are $15\%$ and $\%20,$ respectively. What is the aporogriate divcount rate for Jackson's to evaluate the NPV of thls purchase?

$15\%$

$205$

$885$

We need to know the firm's tax rate to annwer