First and Goal Corporation's stock returns have a covariance with the market portfolio of $\mathrm{.}0487.$ The standard deviation of the returns on the market portfolio is $20$ percent and the expected market risk premium is $6\mathrm{.}7$ percent. The company has bonds outstanding with a total market value of $$60$ million and a yield to maturity of $6\mathrm{.}5$ percent. The company also has $4\mathrm{.}1$ million shares of common stock outstanding, each selling for $$32.$ The company's CEO considers the firm's current debt$-$equity ratio optimal. The corporate tax rate is $21$ percent and the risk$-$free rate is $3\mathrm{.}1$ percent. The company is considering the purchase of additional equipment that would cost $$56$ million. The expected unlevered cash flows from the equipment are $$17\mathrm{.}9$ million per year for $5$ years. Purchasing the equipment will not change the risk level of the firm. A$.$ Use the weighted average cost of capital approach to determine whether the company should purchase the equipment. B$.$ Suppose the company decides to fund the purchase of the equipment entirely with debt. What is the cost of capital for the project now? Explain.