3. A firm's financial manager has estimated the weighted average cost of capital (WACC) for the firm to be 8.5%. a. What information would the manager have used to make this calculation and what assumptions would have been required before this could be used for project evaluation? Explain. [6 marks] b. Is there any effect on the WACC estimation if the manager decides to finance a new project with debt only? Explain. [6.5 marks] [Total: 12.5 marks]