1 pts Question 18 U You are considering investing in a project that increases annual costs by $25,000 per year over the project's 5 year life. The project has an initial cost of $500,000 and will be depreciated straight-line over 5 years. Assume a 22% tax bracket and a discount rate of 11%. Suppose the equipment is sold at the end of year 5 for $300,000, pretax. What is the NPV? -$356,428.12 -S455,897.34 $351,892.65 $323.497.47 0-$317.818.44 1 pts Question 19 Jake the Dog Inc. is investing in a new portable iguana killing machine that will cost $310,000. The machine has a useful life of 6 years and falls into the 5-year property class for the depreciation purposes. The IRS MACRS schedule for the six years is: (1) 20%, (2) 32%, (3) 19.2%. (4) 11.52%. (5) 11.52%, (6) 5.76%. It will generate $50,000 per year of savings for Jake and can be sold for $50,000 at the end of the 6-year period. Jake's corporate tax rate is 32%. In addition, Jake has 2000 outstanding 9% annual coupon bonds with a $1000 par value, 20 years to maturity and a price of $1085. Jake also has 70.000 shares of common stock outstanding that is selling for $45 per share. This stock has a beta of 2.75 (its Jake! he is a risky dog-dude!!), the expected market return is 12% and the risk-free rate is 5%. Finally, Jake has 36,000 shares preferred stock outstanding that pays a 3.5% dividend and sells for $40 per share. What are the depreciation expenses for the machine for years 1 thirch 6 (do not include taxes here)? $34,330, 54.440.33.820. 15.450. 15.450, 78,436 O $62,000, 67,200, 40,320. 24.192. 24.192, 12.096 $31,332, 30.776, 18,928, 18,964. 11.520, 11,520 O $62,000, 99,200, 59,520, 35,712, 35,712, 17,856 $33,333, 33,333,33,333,33333, 33,333, 33,333