McCormick & Company is very satisfied with the work finance analysts did on the previous project, and they would like us to continue working with them. In our ongoing work with this client, we are expecting you to be able to determine the cost of capital and make capital budgeting decisions.

McCormick has expanded their current product line through an acquisition and is now considering a new project that requires an initial investment to build a new plant and purchase equipment. Given the information on capital structure and valuation, determine if McCormick should accept this project.