35) Damodaran Gas Seekers Ltd. Co. is planning the acquisition of a 5-year drilling machine worth $15,000 (quantities expressed in thousands). The company is expecting to earn $5,000 annually after taxes. The cost of equity is 15 percent. The acquisition is financed 60 percent with debt, at a cost of 5 percent annually. The tax rate is 25 percent. You are using the WACC (L) valuation model. Determine NPV. a. $3,998 b. $4,833 c. $6,284 d. $2,837 36) (Continue) Determine the base-case NPV if you were to use the APV model. a. $2,877 b. $3,769 c. $4,448 d. $6,223 37) (Continue) The firm is going to return the debt in five level installments, payable by the end of each period. Determine the interests amount corresponding to each period. 38) (Continue) Determine the present value of the tax shields and the APV. Use the appropriate discount rate considering that we have a clear schedule of interest payments and tax shields. a. PV of tax shields = $355; the APV =$4,448 b. PV of tax shields = $311; the APV =$4,759 c. PV of tax shields = $410; the APV =$4,833 d. PV of tax shields = $182; the APV =$5,878 39) (Continue) Determine the WACC(L) if the weight of debt changed to 20 percent. a. 0.1075 b. 0.1275 c. 0.0875 d. 0.0775