Acme Corp has a target capital structure of $40\%$ debt and $60\%$ equity. It has $$350$ million in bonds

outstanding with a yield of $7\%$ and $50$ million shares of stock outstanding with a current market

price of $$10\mathrm{.}50$ per share. The company's beta is $1\mathrm{.}32$ and the risk$-$free rate of interest is $4\%$ with a

market risk premium of $6\%.$ The firm has a tax rate of $25\%.$ The company is looking to raise $$250$

million to build a second factory. The new factory will increase output substantially. The table

below shows the anticipated cash flows generated from the new factory including a salvage value in

year $5.$ What is the IRR of this project?

$13\mathrm{.}47\%$

$12\mathrm{.}21\%$

$15\mathrm{.}58\%$

$11\mathrm{.}64\%$