Lahoma Enterprises, Inc., needs $15 million to finance a major product development. The project will be financed from the following sources:

Source	Amount	Comments
Loans	$2,600,000	14%/yr with semiannual compounding
Bonds	$4,100,000	12% bond interest rate, quarterly premiums
Stock	$5,000,000	$6.50 dividend on selling price of $65/share
Retained Earnings	$3,300,000

Lahoma Enterprise's effective tax rate is 34% with taxes paid annually. The stock price is stable. Management determines MARR based on the weighted average cost of capital plus 8 percent (i.e. if the weight average cost of capital is 12 percent, MARR is 20 percent). Determine the appropriate value of MARR for evaluating this project.