DUR Inc. has two distinctive business divisions, i.e. fitness centers and travel agency. The fitness center business has a cost of capital of 10% and the travel agency business has a cost of capital of 7%. The weighted average cost of capital of the company is 10%. DUR has more than 80% of its revenues from its fitness center business, and the rest from the travel agency business. DUR is considering a purchase of another company in the travel agency business. What is the appropriate cost of capital to evaluate the new acquisition? Explain.