Question 19 take the Dog Inc. is Investing in a new portable Iguana killing machine that will cost $310.000. The machine has a useful life of 6 years and falls into the 5-year property class for the depreciation purposes. The IRS MACRS schedule for the six years is: (1) 20% (2) 32%, (3) 19.2%. (4) 11.52%. (5) 11.52%, (6) 5.76%. It will generate $50,000 per year of savings for Jake and can be sold for $50,000 at the end of the 6-year period lakes corporate tax rate is 32% In addition, lake has 2000 outstanding 9% annual coupon bonds with a $1000 par value, 20 years to maturity and a price of $1085. Jake also has 70,000 shares of common stock outstanding that is selling for $45 per share. This stock has a beta of 2.75 (its Jake! he is a risky dog-dude!!), the expected market return is 12% and the risk-free rate is 5%. Finally, Jake has 36,000 shares preferred stock outstanding that pays a 3.5% dividend and sells for $40 per share. What are the depreciation expenses for the machine for years 1 through 6 (do not include taxes here)? $31,332, 30,776, 18,928, 18,964, 11,520, 11,520 O $62,000, 99,200, 59,520, 35,712, 35.712, 17,856 O $42,000, 67,200, 40,320, 24,192, 24,192, 12.096 $33,333, 33,333, 33,333, 33,333, 33,333, 33,333 $34,330, 54,440. 33,820, 15,450, 15,450, 78,436