Question 16 1 pts St. Johns Company is contemplating a new investment to be financed with debt. The firm could sell new $1,000 par value bonds with a 12.5% coupon rate and semi-annual payments. The bonds would mature in 15 years. The bonds would sell at par, but flotation costs would amount to 5.5% of par value. The firm has a 34% marginal tax rate. What is the firm's cost of debt financing? 17.5% 14.4% O 8.8% 13.4% 9.5% Question 15 1 pts Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $260,000, and installation costs would amount to $28,000. An additional $10,000 in net working capital would be required at installation. The machine has a class life of 3 years. 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 firm plans to sell the machine for $120,000. The firm has a required rate of return on investment projects of 12% and a marginal tax rate of 34%. What is the NPV of the project? O $130,250 $83,040 $92.717 $90.987 $122,300