A firm with a corporate wide debt-to-equity ratio of 0.5, an after cost tax of debt of 7 %, and a cost of equity capital of 15% is interested in pursuing a foreign project. The debt capacity of the project is the same as for the company as a whole, but its systematic risk is such that the required rate on equity is estimated to be about 12%. The after tax cost of debt is expected to remain at 7%. What is the project’s weighted average cost of capital? How does it compare with the parent’s WACC?