3. (20 points) Assume that Tri-State corporation is thinking about buying some new equipment for its manufacturing facility. Tri-State wants to make sure that the equipment's future cash flows more than compensate for the cost to finance the equipment. Tri-State's current capital structure is: Debt Common Stock $150,000 $250,000 The current debt has an interest rate of 5%, and the shareholders expect a return of 12%. The corporate tax rate is 30%. a. Please calculate the weighted average cost of capital for Tri-State: b. Tri-State can borrow the money from their bank at 5% for this equipment and the company's current Return on Assets is 9%. If you were going to determine the present value of the future cash benefits from this equipment, which of these rates would you use as your discount rate and why