Global Enterprise Inc. is considering the purchase of a new machine which is expected to increase sales by $13,000 in addition to increasing fixed expenses by $3,000 annually. Due to the sales increase, Global Enterprise, Inc. will need to increase working capital by $1,000 at the beginning of the project. Global Enterprise Inc. will depreciate the machine using the straight-line method over the project's five year life to a salvage value of zero. The machine's purchase price is $24,000. \ \ Global Enterprise currently has the following capital structure and will maintain the proportion. Debt: $3,000,000 par value of 9% bonds outstanding with an annual before-tax yield to maturity of 7.67%. The bonds currently sell for $115 per $100 par value. Common stock: 46,000 shares outstanding currently selling for $50 per share. The firm expects to pay a $5.50 dividend per share one year from now and is experiencing a 3.83% growth rate in dividends, which it expects to continue indefinitely. The firm's marginal tax rate is 40%.\ \ Using the information above, answer the following questions: