You are interested in investing in a project that needs an investment today of $10,000. It is a 1-period project with an IRR of fifteen percent. You will raise twenty percent of the dollars from debt with a kd of nine percent. The remaining dollars will come from equity with a cost of twenty percent. Your tax rate is forty percent.

Would accepting the project result in what rate of return for the equity investors? Do you believe the project acceptable? Why or Why not?