6)	Company is considering the purchase of a piece of equipment in '12.
	The projected cost of the equipment is					50,000
	The equipment will be depreciated via the MACRS - 5 year life
	This equipment is expected to generate the following economics:
		Revenue for first year will be					45,700
		Revenue will increase by					1.0%	per year thereafter
		Expenses for first year will be					29,700
		Expenses will decrease by					1.0%	per year thereafter
	Company's Capital Structure is as follows:
		Bonds			50,000
		Preferred Stock			75,000
		Common Stock			0
	Company will finance projects based on their historic approach.
	Relevant financing information is as follows:
	Bond Market rate in year - (2012)				5%
	Company Tax Rate				35%
	Preferred Stock Information
	Sales Price				40.00
	Dividend				2.35
	Flotation Cost (Percentage)				4.0%
	Common Stock Information
	Sales Price				50.00
	Flotation Cost (Percentage)				2%
	Dividend History
		Year	Dividend
		2009	0.98
		2010	1.04
		2011	1.12
	Company will evaluate the first four years of cash flows only
	1) Based on Payback criteria of 3 years - should the asset be purchased
	2) Based on NPV - Hurdle rate of Cost of Capital plus 2% - should the asset be purchased
	3) At what rate is the company indifferent
	4) If the company financed solely with P/S, should the asset be purchased