please see attached document. Thanks. I need the answers and I will figure out the math.

Question 2 1 pts A replacement computer will cost you $3,500, but save you $750 each year because of the faster processor. What is the payback period of the computer? 4.91 4.80 4.38 4.57 4.67 Flag this Question Question 3 1 pts A new transmission in your truck will cost $7,500. Luckily, it should reduce maintenance expense by $3,525 each year for the next 10 years. What is the profitability index of the transmission? Use a discount rate of 12.3%. 2.99 2.62 2.76 2.81 2.40 Flag this Question Question 4 1 pts A new security system has a price-tag of $7,500, but should save your company $3,275 each year for the next 10 years in reduced thefts. What is the IRR of the security system? 38.25% 42.40% 44.98% 45.01% 38.88% Flag this Question Question 5 1 pts Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project B? Year 0 1 2 3 Project A -300,000 150,000 150,000 80,000 Project B -300,000 70,000 70,000 120,000 4 5 6 80,000 120,000 120,000 60,000 61,292 19,086 20,179 69,055 78,468 Flag this Question Question 6 1 pts SanData Inc. recently paid its annual dividend of $3. Dividends have consistently grown at a rate of 3%. You estimate that the stock has a required return of 17%. What is the intrinsic value of this stock? $21.60 $22.07 $23.62 $21.01 $19.99 Flag this Question Question 7 1 pts DJ Industries has outstanding $70 par value preferred stock that pays a 7.75% dividend rate per year. You estimate that the stock has a required discount rate of 18%. What is the intrinsic value of this preferred stock? $30.60 $30.14 $31.06 $32.75 $27.41 Flag this Question Question 8 1 pts Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.44. The current risk-free rate is 2.5% and the market return is 11%. Assuming that CAPM holds, what is the intrinsic value of this stock? $29.70 $31.11 $29.12 $31.44 $31.38 Flag this Question Question 9 1 pts Sparrow Products Industries stock is currently selling for $80. It just paid its annual dividend of $2 after reporting an ROE of 15%. The firm pays out 50% of its earnings as dividends. What is the expected return of this stock? 9.60% 10.71% 9.30% 10.19% 9.52% Flag this Question Question 10 1 pts Broden, Inc. recently issued $70 par value preferred stock that pays an annual dividend of $19. If the stock is currently selling for $50, what is the expected return of this preferred stock? 40.69% 39.11% 39.70% 38.00% 41.34% Flag this Question Question 11 1 pts Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $165,000 per year. However, other cash operating expenses will increase by $86,000 per year. The equipment will cost $260,000 and is depreciable over 10 years using simplified straight line to a zero salvage value. Crossroad will invest $10,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project. $53,000 $79,000 $52,140 $60,980 $34,980 Flag this Question Question 12 1 pts Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is selling the equipment for $10,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital. 9,932,000 10,068,000 6,468,000 6,600,000 7,660,000 Flag this Question Question 13 1 pts Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and installation costs would amount to $28,000. Also, $10,000 in net working capital would be required at installation. The machine will be depreciated for 3 years using simplified straight line depreciation. The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 2 years. At the end of the second year, the machine will be sold for $50,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%. What is the NPV of the project? $76,000 $108,440 $22,440 $9,555 -$16,752 Flag this Question Question 14 1 pts Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and installation costs would amount to $28,000. Also, $10,000 in net working capital would be required at installation. The machine will be depreciated for 3 years using simplified straight line depreciation. The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 5 years. At the end of the fifth year, the machine will be sold for $20,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%. What is the IRR of the project? 19.7% 9.5% 14.1% 28.2% 31.3% Flag this Question Question 15 1 pts Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and installation costs would amount to $28,000. Also, $10,000 in net working capital would be required at installation. The machine will be depreciated for 3 years using simplified straight line depreciation. The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 2 years. At the end of the second year, the machine will be sold for $100,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%. What is the NPV of the project? $3,875 $9,555 - $9,783 $12,155 $19,016 Flag this Question Question 16 1 pts Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 8.5%. Also, bonds can be issued at a pretax cost of 10%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $59. Flotation costs will be $3 per share. The recent common stock dividend was $3.15. Dividends are expected to grow at 7% in the future. What is the cost of capital if the firm uses bonds and issues new common stock? 10.4% 9.9% 10% 11% 11.8% Flag this Question Question 17 1 pts Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate is 34%. The firm can issue the following securities to finance the investments: Bonds: Mortgage bonds can be issued at a pre-tax cost of 9 percent. Debentures can be issued at a pre-tax cost of 10.5 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $46. Flotation costs will be $3 per share. The recent common stock dividend was $3.60. Dividends are expected to grow at 6% in the future. What is the cost of capital using mortgage bonds and internal equity? 13.12% 10.96% 11.35% 11.69% 11.30% Flag this Question Question 18 1 pts A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is offered, flotation costs will be 3 percent of the current market price of $80. The firm's marginal tax rate is 35 percent. What is the firm's cost of preferred stock financing? 8.0% 7.4% 5.0% 6.7% 7.7% Flag this Question Question 19 1 pts Hampton Corporation has a beta of 1.6 and a marginal tax rate of 34%. The expected return on the market is 11% and the risk-free interest rate is 6%. Estimate the firm's cost of internal equity. 6.56% 12.8% 13.8% 12.5% 14.0% Flag this Question Question 20 1 pts St. Thomas Company is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 9.5 percent and will be sold at a market price of $980. Flotation costs will amount to 4 percent of market value. The bonds will mature in 15 years and coupon payments will be semiannual. St. Thomas' marginal tax rate is 35%. What is the firm's cost of debt financing? 9.76% 6.93% 6.34% 10.28% 6.68%