Erdemir is a Turkish crude steel producer with a 36% debt-to-value ratio (DN) and a 12% cost of equity. Its debt is now yieiding 8%. Erdemir is considering a new project with an IRR (internal rate of return) of 13.4% that increases the efficiency of steel pipe production. Assume that WACCs of steel pipe production firms average approximately 14%, a. Calculate the WACC of Erdemir. Assume that Erdemir pays a 40% corporate tax. (Intermediate colculations should not be rounded. Enter your answer as a percent rounded to 2 decimal places.) b. Assume that Erdemir will discount the project cash flows at the firm's WACC? Would it be a correct decision to make? Yes No c. Should Erdemir accept the new project? Yes No Erdemir is a Turkish crude steel producer with a 36% debt-to-value ratio (DN) and a 12% cost of equity. Its debt is now yieiding 8%. Erdemir is considering a new project with an IRR (internal rate of return) of 13.4% that increases the efficiency of steel pipe production. Assume that WACCs of steel pipe production firms average approximately 14%, a. Calculate the WACC of Erdemir. Assume that Erdemir pays a 40% corporate tax. (Intermediate colculations should not be rounded. Enter your answer as a percent rounded to 2 decimal places.) b. Assume that Erdemir will discount the project cash flows at the firm's WACC? Would it be a correct decision to make? Yes No c. Should Erdemir accept the new project? Yes No