Kottinger's kamp Supplies is considering an investment in new manufacturing equipment. The equipment costs $220,000 and will provide annual after- tax inflows of $50,000 at the end of each of the next seven years. The firm's market value debt/equity ratio is 25%, its cost of equity is 14%, and its pre-tax cost of debt is 7%. The flotation costs of debt and equity are 3% and 9%, respectively. The firm's combined marginal federal and provincial tax rate is 40%. Assume the project is of approximately the same risk as the firm's existing operations. What is Kottinger's weighted average cost of capital? Multiple Choice 10.86% O 11.14% 8.91% O O O 12.04% 9.99% C 9.99% Nort