Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an $11$ 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 $9$ percent return but would cost $15$ percent to finance through common equity. Assume debt and common equity each represents $50$ 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

ices

$$ Piece of equipment