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

Equity shares outstanding	20	million
Stock price per share	$ 33
Yield to maturity on debt	8.5%
Book value of interest-bearing debt	$ 320	million
Coupon interest rate on debt	3.8%
Market value of debt	$ 215	million
Book value of equity	$ 350	million
Cost of equity capital	10.6%
Tax rate	35%

Burgundy is contemplating what for the company is an average-risk investment costing $26 million and promising an annual ATCF of $4.3 million in perpetuity.

A.What is the internal rate of return on the investment?

Note: Round your answer to 2 decimal places.

Internal Rate of Return

%

B. What is Burgundy's weighted-average cost of capital?

Note: Round your answer to 2 decimal places.

Weighted-average Cost

%