Question 9 1 pts Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $742,000 per year. However, other cash operating expenses will increase by $228.000 per year. The equipment will cost $131,000 and is depreciable over 8 years using simplified straight line to a zero salvage value. Crossroad will invest $38,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project. Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate is 34%. The firm can issue the following securities to finance the investments: Bonds: Mortgage bonds can be issued at a pre-tax cost of 11.0 percent. Debentures can be issued at a pre-tax cost of 10.0 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $50. Flotation costs will be $5 per share. The recent common stock dividend was $4.13. Dividends are expected to grow at 3% in the future. What is the cost of capital using mortgage bonds and internal equity? PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS. DO NOT INCLUDE % SIGN.E.G. INSTEAD OF 9.99% INPUT 9.99