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Question 5 [13] Zazu, the financial manager of Pride Ltd, has to make a recommendation to the executive management committee of the company about the

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Question 5 [13] Zazu, the financial manager of Pride Ltd, has to make a recommendation to the executive management committee of the company about the viability of a new proposed project - A Bug's Life Cuisine. Timon has calculated that the return on the proposed project is 18.50%. He needs to calculate the weighted average cost of capital in order to decide whether the project is viable or not and has the following information avaliable to do so: Required: Show all your calculations and round off your answers to two decimals. 5.1 Use the costs of capital avallable to Timon to calculate the weighted average cost of capital (WACC) for the A Bug's Life Cuisine project. 5.2 Advise Timon on his recommendation to Zazu and the executive management mnmmittee whather or not thay shnulld invast in A Bua's Life Cuisine

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