See image file for question: IMG_2565.JPG a. Assuming that the investment banker is correct, use book value weights to estimate the project- specific costs of capital for the two projects.(Hint: The...

See image file for question: IMG_2565.JPG

a. Assuming that the investment banker is correct, use book value weights to estimate the project- specific costs of capital for the two projects.(Hint: The only difference in the WACC calculations relates to the debt capacities for the two project.)

b. How would your analysis of the project specific WACCs be affected in Pearson's CEO decided to deliver the firm by using equity to finance the better of the two alternatives (i.e., new Omaha plant or the Charleston plant expansion)?