A firm needs to purchase equipment for its 2,000 drive-ins nationwide. The total cost of the equipment (not including flotation costs) is $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually in perpetuity. The firm's optimal capital structure consists of 40% debt and 60% equity. The firm's cost of equity is 13%, its pretax cost of debt is 8%, and the flotation costs of debt and equity are 2% and 8%, respectively. What is the dollar flotation cost for the proposed financing? (Round your final answer to the nearest dollar.) O $142,098 O $112.000 $131,230 O $118,644 None of the above are correct. You purchase an asset for $12,000,000. This asset has a 3 year class life. The company's WACC is 12% and the appropriate tax rate is 34%. Under MACRS depreciation, today's value (i.e., the present value) of the tax shield generated by this asset over its life will be greater than or equal to , but less than__. Assume the asset will be kept until it is fully depreciated. Select the range that contains the correct answer. O $0; $2.50 million $2.50 million; $3.00 million $3.00 million: $3.50 million $3.50 million; $4.00 million $4.00 million: Sinfinity