20a- A project has annual cash flows of $3,500 for the next 10 years and then $10,500 each year for the following 10 years. The IRR of this 20-year project is 13.7%. If the firm's WACC is 12%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

b- Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 25%. The current stock price is P₀ = $32.00. The last dividend was D₀ = $3.50, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places.

r_s = %

WACC = %