Andrews plc is financed 50% by equity and 50% by debt capital. The cost of equity is 20% and the cost of debt is 14%. The company currently pays out all its profits as dividends and expected dividends are $800,000 a year into the indefinite. A project is under way consideration which would cost $1.2 million. The company’s mix of finance will remain unchanged after the financial results of the project, and the finance needed to fund it, have been taken into account. It would increase annual profits before interest by $340,000. The cost of equity & debt capital would be unchanged. Required: a). ignore tax, calculate WACC for Andrews plc b). what is the NPV of the project? c). by how much would the value of equity increase if the project is undertaken?