Question 3: Malex Corp. needs to purchase new plastic moulding machines to meet the demand for its produce the cost of the equipment is $6,616,000. It is estimated that the firm will increase after tax cash flow (ATCH) by $1.622 277 annually for the next 5 years. The firm is financed with 40% debt and 60% equity, both based on current market values, though the firm has announced that it wants to quickly change its debt to equity ratio to 15. The firm's bata is 1.73 the risk free rate is 1.47% and the expected market return is 6-40%. Matex Corp's sem annual bonds have 12. 40% coupons, 12 years to maturity, and a quoled price of 95.741. Assume the firm's tax rate 15 34%. The firm's last 5 dividends (the last in the list is DO) are 1.23, 1.50, 1.99, 2.54, and 2.99. Its current market price is $39.93 Question 3, Short Answer D: Briefly explain which decision rule is best when trying to make a capital budget decision in this scenario where there are cleanup costs at the end of the project. (10 marks) Question 3: Malex Corp. needs to purchase new plastic moulding machines to meet the demand for its produce the cost of the equipment is $6,616,000. It is estimated that the firm will increase after tax cash flow (ATCH) by $1.622 277 annually for the next 5 years. The firm is financed with 40% debt and 60% equity, both based on current market values, though the firm has announced that it wants to quickly change its debt to equity ratio to 15. The firm's bata is 1.73 the risk free rate is 1.47% and the expected market return is 6-40%. Matex Corp's sem annual bonds have 12. 40% coupons, 12 years to maturity, and a quoled price of 95.741. Assume the firm's tax rate 15 34%. The firm's last 5 dividends (the last in the list is DO) are 1.23, 1.50, 1.99, 2.54, and 2.99. Its current market price is $39.93 Question 3, Short Answer D: Briefly explain which decision rule is best when trying to make a capital budget decision in this scenario where there are cleanup costs at the end of the project. (10 marks)