Tim works for HydroTech, a manufacturer of high$-$pressure industrial water pumps. He reports directly to the CFO, and she has asked him to calculate HydroTech's WACC. He has gathered the following information about HydroTech: its market capitalization $($its market value of equity$)$ is $$100$ million, its beta is $1\mathrm{.}2,$ the total book value of its debt is $$50$ million, it has $$10$ million cash, and its cost of debt $($using the quoted yields on HydroTech's outstanding bond issues$)$ is $5\%.$ In addition, the yield of the $10-$year government bond $($the risk$-$free rate$)$ is $3\%,$ the market risk premium is $5\%,$ and the marginal corporate tax rate is $35\%.$ Calculate HydroTech's WACC. When is it appropriate to use this WACC to evaluate a new project?

Calculate HydroTech's WACC.

WACC $=\%$

$($Round to two decimal places.$)$