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1 pts Question 20 T N Jake the Dog Inc. is investing in a new portable iguana killing machine that will cost $310.000. The machine

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1 pts Question 20 T N 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 $1095. 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 operating cash flows for the machine for years 1 through 6? O $33,000 43, 300, 33,330, 23.400,23,400, 18.400 O $47.440, 55,504,46,902, 41.741, 41.741, 37,871 O S41,332, 55,776, 43.928, 40,964, 40,964, 36,560 O $46.600, 54,760, 46,056, 40,833, 40,833, 36,917 O $53,840, 65,744.53,046, 45,428, 45,428, 39,714

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