The Weston Enchilada Company has a levered equity beta of 0.8. The company isthinking about getting into the Whataburger business. Currently, Weston Enchilada isfinanced with 50% long-term debt. The debt is risk free and pays 4% interest before taxes. Alittle research suggests that the Whataburger business is expected to yield 16% on after-taxtotal operating cash flows. For comparison, another Whataburger in town has an equity betaof 2.5 but has 20% debt in its capital structure. You can assume that the market return is12%, marginal tax rates on everything are 35% and the new project would be financed with50% debt. Find the WACC for the new Whataburger venture and decide what WestonEnchilada should do?