Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an $6$ percent return and can be financed at $3$ percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a $14$ percent return but would cost $16$ 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.