(8 pts) 6. On March 1st, Martin bought a car for $100,000. He paid $20,000 in cash at the time of the purchase and agreed to pay the balance in eight equal annual installments that include both the principal and 10 percent interest on the declining balance. Required: a) Determine the amount of the annual payment. a) Determine the total dollars of interest that Martin will pay for this loan. b) Determine the amount of interest that is included in the first payment. It is not necessary to complete an amortization schedule. Assets (10 pts.) 7. BAM Corporation's current capital structure is found below. $50 million Debt $20 million Equity $30 million Share price $50.00 Shares outstanding 800,000 Bond interest rate 12% EBIT is expected to be $10.0 million. BAM has a tax rate of 25%. Determine the earnings per share and the return on equity. (8 pts) 8. The Robinsons are planning for their daughter's education. She is three years old and will start college in 15 years. How much will they have to set aside each year, beginning one year from today to have $600,000 when she starts college, if the interest rate is 9 percent? How much will the daughter be able to withdraw from the account each of her six years in college and graduate school? h (15 pts) 9. The BAM Corporation is considering the purchase of a chemical analysis machine. The machine being considered will result in an increase in annual revenue of $300,000 and cash expenses of $100,000 per year, it has a purchase price of $650,000, and it would cost an additional $50,000 to correctly install this machine. In addition, to properly operate this machine, inventory must be increased by $40,000. This machine has an expected life of 8 years, after which it can be sold for $60,000. This machine is being depreciated down to zero. There is a 20% tax rate, and a required rate of return of 20%. Required: Determine whether or not BAM Corporation should purchase the machine