Peterbilt is evaluating a project to buy a project to convert existing office space into a production facility. It will take 8 years to complete the project at an initial cost of $2.38M paid immediately. The office conversion is expected to yield cash flow in 8 years of $7.95M. Alternatively, Peterbilt can buy a new warehouse and set up a production for a cost of $16.35M today, this project is estimated payoff $35.25M in 15 years. Clevelands cost of capital is 12.71% assume interest is compounded semiannually Find the IRR for each project and report the higher IRR.

For your consideration: Should you choose the higher IRR project? Why/why not

Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

Enter percentage answers as a positive percentage % rounded to 2 decimal places. For example 0.123456 should be enter as: 12.35 (##.##).