Whitewater Company is evaluating a new project that has an initial cost of $1 million. If the project gets accepted, Whitewater plans to borrow $1 million from a local bank in order to finance this project. The following information is available for Whitewater Company: Cost of Equity: 14% Cost of Debt: 7% WACC: 12% Which of the following statements is true regarding the required rate of return Whitewater should use when evaluating this project?
A) Whitewater should use a required rate of 7% because this project will be fully financed by debt.
B) Whitewater should use a required rate of 14% if this project is perceived to be less risky than the company's existing assets.
C) All statements in other answer choices are true
D) Neither of the statements is true. Whitewater should use the NPV to evaluate this project.
E) Whitewater should use a required rate of 12% if this project is perceived to be as risky as the company's existing assets

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100