Jupiter Co (dec 08)

with reference to (a)

i have watched the lectures and solves it again and again but this confusion below

_ a. so IRR = cost of debt we will take in W.A.C.C without taxing.
_b. wht if question already gve us cost of debt of reedemable debt , we will assume that it is relevant to take in W.A.C.C and whether it need taxing.
cost of debt gven in jupiter and it is reedemable and it got taxed see
WACC = (4.65% × 0.107 × [1 – 0.25]) + (8.5% × [1 – 0.107])
= 7.96%