Grainger and Company has an opportunity to invest $500,000 in a new line of direct-drive rotary screw compressors. Financing will be equally split between common stock ($250,000) and a loan with an 8% after-tax interest rate. The estimated annual net cash flow (NCF) after taxes is $48,000 for the next 7 years (Hint: use this annual revenue plus initial investment of equity of 250,000 to get the return on such investment). Grainger uses the capital asset pricing model for evaluation of its common stock. Recent analysis shows that it has a volatility rating of 0.95 and is paying a premium of 5% above a safe return on its common stock. Nationally, the safest investment is currently paying 3% per year. Is the investment financially attractive if a) Grainger uses as the MARR its equity cost of capital only. b) Grainger uses as the MARR its WACC.