Your Company needs to purchase new machine to meet the demand for its product. The cost of the equipment is $250,000. It is estimated that the firm will increase operating cash flow (OCF) by $40,000 annually for the next seven years. The firm is financed with 30% debt and 70% equity, both based on market values. The firm's cost of equity is 10% and its pre-tax cost of debt is 8%. The flotation costs of debt and equity are 4% and 6%, respectively. Assume the firm's tax rate is 30%. (Mark 40, 8 for each A, B, C sub-question and 16 for D) (A) What is the firm's WACC? (B) What is the weighted average flotation cost, fA, for the firm? (C) What is the dollar flotation cost of the proposed financing? (D) Consider whether you will accept this project or not?