You have the following information about Burgundy Basins, a sink manufacturer.

Equity shares outstanding		20	million
Stock price per share	$	36
Yield to maturity on debt		6.5	%
Book value of interest-bearing debt	$	335	million
Coupon interest rate on debt		4.1	%
Market value of debt	$	230	million
Book value of equity	$	380	million
Cost of equity capital		11.2	%
Tax rate		35	%

Burgundy is contemplating what for the company is an average-risk investment costing $32 million and promising an annual ATCF of $4.6 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? (Round your answer to 2 decimal places.)