George Steele (nicknamed "The Animal" by his friends) is considering investing in a new project. The project will need an initial investment (today) of $1,200,000 and will generate $300,000 (after-tax) annual operating cash flows for the next five years. The first $300,000 occurs one year from today and the last occurs five years from today. Calculate the IRR for the project. The IRR for this project is less than 6 percent The IRR for this project is greater than or equal to 6 percent but less than 7 percent. The IRR for this project is greater than or equal to 7 percent but less than 8 percent. The IRR for this project is greater than or equal to 8 percent but less than 9 percent. The IRR for this project is greater than or equal to 9 percent. The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 4% per year in the future. Carpetto's common stock currently sells for $24.50 per share. Carpetto just paid a dividend of $2.00, and it will pay its next dividend of $2.08 in one year. What is its cost of common equity? Round your final percentage answer to two decimal places. 12.16% 11.24% O 8.16% O 12.49% None of the above are correct. Given a choice, most firms use depreciation to report performance to shareholders in their annual reports, but use depreciation for tax purposes to lessen tax liabilities in the early years. All else constant, the present value of the tax shield generated by depreciation is when using MACRS relative to straight-line. Straight-line; MACRS; greater Straight-line; MACRS; less MACRS: Straight-line; greater O MACRS: Straight-line; less O MACRS: Straight-line; equal Your company just bought some new industrial equipment for $160,000. This particular industrial equipment has a 5-year class life and the company uses MACRS to depreciate their assets. If the equipment will be sold 5 years from today for $20,000, what is the after-tax cash flow from the sale of the equipment? Assume the tax rate is 40%. $20,000 O $15,840 O $12,000 $13,600 None of the above are correct