Project L requires an initial outlay at t = 0 of $56,000, its expected cash inflows are $15,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

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The Holmes Company's currently outstanding bonds have an 8% coupon and a 14% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places.

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