1.1 Determine the cost of debt capital for a company if the debt interest rate is 16% (compounded annually) and the company tax rate is 30%. (3) 1.2 A new excavator will be purchased for a civil engineering contractor. The cost of the excavator is R500,000, the tax life for consideration is 8 years. 200% declining balance depreciation method is to be used. Determine the residual value of the excavator at the end of the 8 year period. Show all your calculation steps in tabular format. (9)