Puters Pet Foods hus a WACC of 125 percent and is conudering merufacturing pettoys. Tim's Toys specializes in pet toys and has a WACC of 105 percent What discount rate should Peter's Pet Foods use to evaluate this investment? 10.5 percent because that is appropriate given the nk of the project 125 percent because that is the appropriate rate for the company 15 percent because after investment Peter's wil be a combination of the two businesses A weighted average of 125 and 105 with the weights based on the proportionnent business The free rate