3. Your firm is considering a new market project. The project will require an equipment purchase of $450,000. The equipment also requires a delivery fee of $125,000. The project will generate revenue in the amount of $350,000 each year for four years. Annual costs will be 15% of revenue. At the end of four years, the equipment can be sold for $175,000. The firm is in the 30% tax bracket. The equipment will be depreciated using a four-year life and straight-line method. The firm has a 10% weighted average cost of capital. a. What is the project's annual depreciation expense? b. What is the project's terminal cash flow? c. Using the best capital budgeting metric, should you accept or reject the project? Why? 4. The firm's bonds have six years until maturity, a $1,000 par value, and pay interest semiannually. The bonds have a 9% coupon rate and are currently trading at $995 per bond. The firm is in the 30% tax bracket. What is the firm's after-tax cost of debt