35 Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $4.05 million, plus $214,379.00 in installation costs. The firm will straight-line depreciate the equipment to zero using a 5-year recovery period. Additional sales from the overhaul should amount to $231,772.00 per year, and additional operating expenses and other costs (excluding depreciation) will amount to 39.00% of the additional sales. The firm has an ordinary tax rate of 37.00%. What is the operating cash flow for year 1 of this project? Submit Answer format: Currency: Round to: 2 decimal places. 038 Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.16% coupon bonds which sell for 97.43% of par. Their stock currently has a market value of $25.84 and Mr. Bensen believes the market estimates that dividends will grow at 3.48% forever. Next year's dividend is projected to be $2.88. Assuming a marginal tax rate of 21.00%, what is their WACC (weighted average cost of capital? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) 39 A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU- 3300 produces incremental cash flows of $26,416.00 per year for 8 years and costs $99,521.00 The UGA-3000 produces cremental cash flows of $28,041.00 per year for 9 years and cost $124,438.00. The firm's WACC is 9.56%. What is the equivalent annual annuity of the GSU- 3300? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places