9.Three years ago, your firm purchased a machine for $300,000. It had a 6-year economic life, and you had been depreciating the machine according to the below MACRS table. Unfortunately, economic conditions have changed, and operating the machine is no longer viable. You have found a buyer willing to pay $65,000 for the machine. The appropriate tax rate is 21%. What is your free cash flow from salvage?

MACRS Table
Year	Depreciation
1	8%
2	35%
3	22%
4	15%
5	15%
6	5%

$73,400

$82,950

$51,350

$56,600

$0

10.Consider the following FCFs from three projects with unequal lives:

Year	Project A	Project B	Project C
0	-100	-50	-25
1	50	50	50
2	50	50
3	100

All projects are repeatable, indefinitely. Rank the projects from best to worst based on their repeated project NPVs. Assume WACC is 15%.

Project C > Project A > Project B

Project B > Project C > Project A

Project B > Project A > Project C

Project A > Project C > Project B

Project A > Project B > Project C

Project C > Project B > Project A

11.Your company's stock currently trades at $40 per share and has 2 million shares outstanding. The stock just paid its annual dividend of $6.00 per share, and the dividend is expected to grow at a constant rate of 5% per annum. Your company has $20 million of debt with an interest rate of 15%. Your company faces a tax rate of 21%. What is your company's WACC?

12.32%

13.80%

14.37%

12.63%

14.97%