You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows:

YearsCash Flow0-1001 - 10+19

On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.37. Assume that the rate of return available on risk-free investments is 4% and that the expected rate of return on the market portfolio is 16%.

a.What is the project IRR?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b.What is the cost of capital for the project?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)