Question 2:1 Jake the Dog Inc. is investing in a new portable iguana killing machine that will cost $310.000 The machine has a usetul 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% (21 32%. (3) 19.296. (4) 11.5296. (5) 11.52% (6) 5.76%. It will generate 550.000 per year of savings for Jake and can be sold for $50,000 at the end of the a year period. Jake's corporate tax rate is 3296. In addition, Jake has 2000 outstanding 9% annual coupon bonds with a $1000 par value 20 years to maturity and a price of $1005. 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 ds Joke! he is a risky dog dude! the expected market return is 1294 and the risk-free rate is 5%. Finally, Jake has 36,000 shares preferred stock outstanding sal ways a 3.5% dividend and sells for $40 per share. What is the after tax cost of debt tor Jake? 0536% 5.86% 6,36% 2.65 DIS.53%