exce work on this What is Cape Chemical$$s weighted average cost of capital $($WACC$).$ Rounded to the nearest whole number

The theory used by Clarkson to determine Cape Chemical$$s optimum target capital structure $(30\%$ debt and $70\%$ equity$).$

Weighted average cost of capital $($WACC$),$ was analyzed from both scenarios. To calculate WAAC, the company's cost of equity $(18\%)$ and cost of debt $(12\%)$ are calculated. First look at the option to purchase used equipment.

The used equipment will provide the capacity to blend an additional $800,000$ gallons annually. The used equipment will cost $$105,000$ to acquire and $$15,000$ to install, which is a total of $$120,000$ in cost$.$ The equipment is projected to have an estimated life of three years.

The new equipment with the capacity to blend $1,600,000$ gallons annually will cost $$360,000$ to acquire and $$60,000$ to install. The total cost for new equipment would be $$420,000$ and have a higher capacity and an economic life of seven years.

Weighted Average Cost of Capital $($WACC$)$ Using input from an investment banking firm, the company's cost of equity is estimated at $18\%.$ That bank offered a long$-$term bank loan to finance the new equipment at an annual interest rate of $12\%($before tax cost of debt$).$ However, the bank needs the loan to be secured with the new equipment. The loan agreement would also include a number of restrictive covenants, including a limitation of dividends while the loans are outstanding. While long$-$term debt is not included in the firm's current capital structure, Clarkson believes a $30\%$ debt, $70\%$ equity capital mix would be appropriate for Cape Chemical. Last year, the company's federal plus$-$state income tax rate was $30\%.$ Clarkson does not expect the income tax rate to change in the foreseeable future.

The used equipment will cost $$105,000$ with another $$15,000$ required to install the equipment. The equipment is projected to have an economic life of three years with a salvage value of $$9,000.$ The equipment will provide the capacity to blend an additional $800,000$ gallons annually. The variable cost to blending cost is estimated to be $$\mathrm{.}20$ per gallon. The equipment will be depreciated under the Modified Accelerate Cost Recovery System $($MACRS$)3-$year class. Under the current tax law, the depreciation allowances are $0\mathrm{.}33,0\mathrm{.}45,0\mathrm{.}15,$ and $0\mathrm{.}07$ in years $1$ through $4,$ respectively. The increased sales volume will require an additional investment in working capital of $2\%$ of sales $($to be on hand at the beginning of the year$).$