Question 3 Matex Corp. needs to purchase new plastic moulding machines to meet the demand for its product the cost of the equipment is $6.616,000 It is estimated that the form will increase after tax cash flow (ATCF) by $1.622,277 amuually 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 quity ratio to 15 The firm's beta is 1.73, the risk froe rate is 1 47% and the expected market return is 6.40% Matex Corp's som annual bonds have 12.40% coupons 12 years to matunty, and a quoted price of 95.741 Assume the firm's tax rate is 34%. The firm's last 5 dividends (the last in the list is DO) are 1 23.1.50, 199, 2.54, and 2.99. Its current market price is $39.93 Question 3, Short Answer D Briefly explam which decision rule is best when trymg to make a capital budget decision in this scenario where there are cleanup costs at the end of the project (10 marks)