QUESTION 9 Waldorf Company has two sources of funds: long-term debt with a market and book value of $5,200,000 issued at an interest rate of 13%, and equity capital that has a market value of $4,000,000 (book value of $2,500,000). Waldorf Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 13%, while the tax rate is 25%. St. Louis Cedar Rapids Wichita Operating Income $520,000 $600,000 $1,020,000 Assets $2,300,000 $4,000,000 $6,000,000 Current Liabilities $130,000 $ 300,000 $600,000 What is the EVA for St. Louis? (Round intermediary calculations to four decimal places.) $155,423 $242,172 $390,000 $147,828 QUESTION 16 The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $480,000. The investment is expected to generate $185,000 in annual cash flows for a period of four years. The required rate of return is 16%. The old machine can be sold for $40,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. O $77,630; yes $440,000; yes $165,600; no $29,600; no