A florist is buying a number of motorcycles to expand its delivery service. These will cost $81,000 but are expected to increase profits by $2,500 per month over the next four years. What is the payback period in this case? A. 24.3 months B. 12.96 months C. 32.4 months D. 19.44 months SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 40%. A. 8.67% B. 9.97% C. 9.1% D. 9.53%