Hill Ltd. is considering updating their systems, which will cost $100,000. The new system will be depreciated prime cost to zero over its 5-year life. It will probably be worth about $20,000 after 5 years. The new machine will save $20,000 per year in operating costs. The tax rate is 30 per cent, and tax is paid in the year of income. Hill Ltd. has several classes of outstanding bonds, and the average yield is 6%. Its beta is 1.3, historical market risk premium is 7.94%, and the treasury yield is 4%. Please use the above information to answer questions 11 to 16. Question 11 What is the required rate of return for Hill? Hill Ltd. is considering updating their systems, which will cost $100,000. The new system will be depreciated prime cost to zero over its 5-year life. It will probably be worth about $20,000 after 5 years. The new machine will save $20,000 per year in operating costs. The tax rate is 30 per cent, and tax is paid in the year of income. Hill Ltd. has several classes of outstanding bonds, and the average yield is 6%. Its beta is 1.3, historical market risk premium is 7.94%, and the treasury yield is 4%. Please use the above information to answer questions 11 to 16. Question 11 What is the required rate of return for Hill