JackITs has 6.0 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 30.00 thousand bonds. If the common shares are selling for $29.10 per share, the preferred share are selling for $14.50 per share, and the bonds are selling for 97.90 percent of par, what would be the weight used for equity in the computation of JackIT's WACC?

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Your firm needs a machine which costs $170,000, and requires $32,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 16%. If this machine can be sold for $17,000 at the end of year 5, what is the after tax salvage value?

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $150,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $15,000. Use of the truck will require an increase in NWC (spare parts inventory) of $4,500. The truck will have no effect on revenues, but it is expected to save the firm $66,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 30 percent. What will the cash flows for this project be during year 2?

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------