1/West Street Automotive is considering adding state safety inspections to their service offerings. The equipment necessary to perform these inspections will cost $557,000 and will generate cash flows of $195,000 over each of the next five years. If the cost of capital is 14 percent, what is the MIRR on this project?

A

18.3%

B

19.21%

C

12.56%

D

16.55%

2/

Quarri Industries has eight percent coupon bonds outstanding. These bonds have a market price of $954.41, pay interest semiannually, and will mature in 6 years. If the tax rate is 35 percent, what is the after-tax cost of this debt?

A

4.78%

B

6.61%

C

5.98%

D

9.20%

3/

The managerial accountant at the Holly and Ivy Tree Store reported that the company anticipates sales of $600,000 in September and October, $625,000 in November, $635,000 in December, and note that the sales figure is $640,000 in January. The August sales revenue was equal to the September sales revenue. The managerial accountant establishes the prices at the Holly and Ivy Tree Store on its merchandise to ensure the company earns 45% gross profit on its sales. The managerial accountant expects the ending inventory at the store to equal 12% of the next month's cost of goods sold.

Compute the COSG, inventory, and purchases budget for October, November, and December