choose this option. Question 5 [13] Zazu, the financial manager of Pride Ltd, has to make a recommendation to the executive management committee of the company about the viability of a new proposed project - A Bug's Life Cuisine. Timon has calculated that the return on the proposed project is 18.50%. He needs to calculate the weighted average cost of capital in order to decide whether the project is viable or not and has the following information available to do so: Source Book value Cost Long-term debt Preference shares 2 250 000 8.25% 700 000 10.50% Ordinary shares 1 750 000 12.00% Required: Show all your calculations and round off your answers to two decimals. 5.1 Use the costs of capital available to Timon to calculate the weighted average cost of capital (WACC) for the A Bug's Life Cuisine project. (8) 5.2 Advise Timon on his recommendation to Zazu and the executive management committee whether or not they should invest in A Bug's Life Cuisine. (5)