The firm’s target debt to capital ratio is 18%. I need to estimate the firm’s WACC using 9.25% for effective cost of debt. Then model the expected cash flows for the new product investment opportunity and value this opportunity at the WACC.

I am having trouble figuring out the correct WACC and expected cash flow for this case study.

The firm’s target debt to capital ratio is 18%. I need to estimate the firm’s WACC using 9.25% for effective cost of debt. Then model the expected cash flows for the new product investment opportunity and value this opportunity at the WACC.

NOTE: I have attached a pdf that gives financial information on the firm’s competitors since it is a private company and has no beta. I am also attaching my forecasted financial statements given the two scenarios: not investing and investing.