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 Hydro Tech its market capitalization (ts market value of equity is $110 milion, its beta is 14 the total book value of as debt is 560 milion, it has 510 milion cash, and its cost of debt (using the quoted yields on HydroTech's outstanding bond issues) is 6%. In addition, the yield of the 10-year government bond (the risk-free rate is 2%, the market risk premium is 7%, and the marginal corporate tax rate is 36% Calculate Hydro Tech's WACC When is it appropriate to use this WACC to evaluate a new project? Calculate Hydro Tech's WACC WACC -0.11% (Round to two decimal places) When is it appropriate to use this WACC to evaluate a new project? OA Hydrotech should use this WACC to evawe projects that are average risk and have a sterbeta value than hydrotech 8. HydroTech should use this WACC to evaluate projects that are above average risk and have a larger book value of debt value than Hydro Tech C Hydro Tech should use this WACC to evaluate projects that are average risk and will be financed in the same ways as HydroTech is financed OD HydroTech should use this WACC to evaluate projects that are below average risk and have a smater cost of debt rate than HydroTech