Chapter $8$ Question $8.$ You have the following information about Burgundy Basins, a sink manufacturer.

Burgundy is contemplating what for the company is an average$-$risk investment costing $$40$ million and

promising an annual ATCF of $$6\mathrm{.}4$ million in perpetuity.

a$.$ What is the internal rate of return on the investment?

b$.$ What is Burgundy's weighted$-$average cost of capital?

c$.$ If undertaken, would you expect this investment to benefit shareholders? Why or why not?