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(10 marks) A new bottling machine oosts $990,000. This cost could be depreciated at 30% per year (Clans 10). The robot would actually be worth

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(10 marks) A new bottling machine oosts $990,000. This cost could be depreciated at 30% per year (Clans 10). The robot would actually be worth $100,000 in five years. The bottling machine would save \$460,000 per year betore taxes and operating costs. Suppose the bottling machine requires us to increase net working capitai by $47. 200 when wo buy it. If we require a 15% return, whet is the NPV of the purchase? Assume a tax rate of 40%. (Do not round intermediate calculations. Round the final answer to 2 decimal places) Problem o 1 (10 marks) ABC Corporation has 9.1 milifon shares of oommon stock outetarveing. 350.000 shares of 4%5100 par value preferred stock outstanding, and 155,0007,50% sermiannual bonds outstanding, per value \$1,000 each. The common stock currently selis for $39 per share and has a beta of 1.56 , the preferred atock round Intermediate calculations. Round the final answer to 2 decimal places) Calculate the Capital structure woights Calculate the oost of Equity. Calculatos Cost of Dobt after trixos Caleulate the cost of preferred shares. Calculafo the VACC

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