You have the following information about Burgundy Basins, a sink manufacturer. Equity shares outstanding 20 million Stock price per share $ 34 Yield to maturity on debt 9.5 % Book value of interest-bearing debt $ 325 million Coupon interest rate on debt 3.9 % Market value of debt $ 220 million Book value of equity $ 360 million Cost of equity capital 10.8 % Tax rate 35 % Burgundy is contemplating what for the company is an average-risk investment costing $28 million and promising an annual ATCF of $4.4 million in perpetuity.

a. What is the internal rate of return on the investment? (Round your answer to 2 decimal places.) b. What is Burgundy's weighted-average cost of capital?