XYZ plc is considering purchasing new equipment that would cost 40 million. The expected unlevered cash flows from this investment are 13 million per annum for the next five years. The companys stock returns have a covariance with the market portfolio of 0.048. The standard deviation of the returns on the market portfolio is 20 per cent, and the expected market risk premium is 7.5 per cent. XYZ currently has bonds outstanding with a market value of 30 million and a yield to maturity of 8 per cent. The company also has 5 million ordinary shares outstanding, currently selling at 20 per share. The companys CEO considers the current debtequity ratio as optimal. Government debt is currently selling at a yield of 6 per cent, and the company pays a corporation tax rate of 21 per cent. Use the WACC approach to determine whether XYZ plc should purchase the equipment