WACC

=

E / (E + D)

x

Cost of Equity

 +WACC = E / (E + D) x Cost of Equity + D / (E + D) x Cost of Debt x (1 - Tax Rate) = 0.9531 x 12.92% + 0.0469 x 3.6468% x (1 - 15.415%) = 12.46% 

D / (E + D)

x

Cost of Debt

x

(1 - Tax Rate)

=

0.9531

x

12.92%

+

0.0469

x

3.6468%

x

(1 - 15.415%)

=

12.46%

I have configured the WACC at 12.46% but need additional help determining the problem. The WACC is the discount rate for the capital budgeting analysis. The project is to determine whether it should be accepted or not which is Building a new Building for $1 million.