A well$-$known piano manufacturer wishes to expand in China. It decides that $80\%$ of the $$32$ million it needs will come from debt, and the remaining $20\%$ from selling equity. The cost of debt is $7\%$ and the corporate tax is $35\%.$ To estimate the cost of equity, the firm uses the CAPM with these parameters:

r$($equity$)=$ r$($free$)+$ B$($r$($market$)$ r$($free$))$

r$($free$)=\mathrm{.}02$ B$=1\mathrm{.}2$ r$($market$)=\mathrm{.}12$

What is the WACC, or hurdle rate, of the investment?

If the IRR of the investment is estimated at $8\%,$ should it proceed?