Consider the following information for Locarian, Inc.: - Locarian's target capital structure weights are 27% long-term debt, 10% preferred stock. and 63% equity. - The firm has one outstanding 10.61% bond issue that matures on July 29,2053 , makes semiannual payments, and currently sells for $1,202 per bond. Assume that July 29, 2023. is the settlement date for the bond issue. - Locarian's preferred stock pays an annual dividend of S6.77 and currently sells for \$78.32. - The company's common stock's returns have a covariance of 0.00389967093 with the market's returns. The variance of the market's returns is 0.001883899 . The market risk premium is 14.01 percent, and the risk free rate of return is 3.05 percent. - The company's marginal tax rate is 23%. a. (15 points) What is Locarian's weighted average cost of capital? b. (10 points) Locarian operates repair shops nationwide and plans to open a shop in Texas. The table below contains the cash flow analysis for this expansion Use the =NPVO function in Excel to find the project's NPV. Should Locarian open the repair shop? Explain