The following partial balance sheets are given for the HES Company which has a marginal tax rate of 35%. The cost of equity is 14.6% and the pretax cost of debt is 8%.

Balance Sheet (Book Value, millions)
Assets	125	Debt	50
		Equity	50
		Preferred	25
Total Assets	125	Total Liabilities	120

Balance Sheet (Market Value, millions)
Assets	150	Debt	50
		Equity	75
		Preferred	25
Total Assets	150	Total Liabilities	150

a- Given the book and market value balance sheets, and preferred stock is $25 mil of total equity and yields 10%. what is the WACC? B - The company would like to invest in a perpetual crushing machine with cash flows of $2.085 million per year pre-tax. Given an initial investment of $12.5 million, what is the value of the machine?