Question: please show all work and equations and ill rate thumbs up! thank you! 9. (10 points) Computational FlyByNite, Inc. is considering a project that will

 please show all work and equations and ill rate thumbs up! please show all work and equations and ill rate thumbs up! thank you!

9. (10 points) Computational FlyByNite, Inc. is considering a project that will result in initial after-tax cash savings of $5 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of 0.8, a cost of equity of 20 percent, and a cost of debt of 16 percent. The corporate tax rate is 25%. a. (5 points) What is FlyByNite's WACC? b. (5 points) Under what circumstances should FlyByNite take on the project

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