Speedy delivery systems can buy a piece of equipment that is anticipated to provide and 6% return and can be financed at 3% with that. Later in the year, the firm turn down an opportunity to buy a new machine that would yield a 10% return but would cost 12% to finance through common equality. Assume debt income equality each represent 50% of the firms capital structure.

speedy delivery systems can buy a piece of equipment that is anticipated to provide and 6% return and can be financed at 3% with that. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 10% return but would cost 12% to finance through common equality. Assume debt and common quality each represent 50% of the firms capital structure.

a. compute the weighted average cost of capital. Do not round intermediate calculations. And put your answer as a percent rounded to two decimal places.

b. Which project or projects should be excepted new machine or piece of equipment