Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an $9$ percent return and can be financed at $6$

percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a $17$ percent return but

would cost $19$ percent to finance through common equity. Assume debt and common equity each represent $50$ percent of the firm's

capital structure.

a$.$ Compute the weighted average cost of capital.

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Weighted average cost of capital

b$.$ Which project$($s$)$ should be accepted?

New machine.

Piece of equipment.