Question No. 2: (10 Marks) Yam-Hash Corporation currently uses a water purification machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis, and it has 6 years of remaining life. Its current book value is Rs.2,100, and it can be sold for Rs.2,500 at this time. If old machine is not replaced, then it can be sold for Rs.500 at the end of its useful life. Yam-Hash is offered a replacement machine that has a cost of Rs.8.000, an estimated useful life of 6 years, and an estimated salvage value of Rs.800. This machine falls into the MACRS 5-year class, so the applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The replacement machine is expected to save Rs. REGISTRATION# (in hundreds) per year. The new machine would require that inventories be increased by Rs.2,000, but accounts payable would simultaneously increase by Rs.500. Yam-Hash fall under tax bracket of 40%, what is the terminal year cash flow? Question#3 Yam-Hash Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of registration# coming 3 years from today. The dividend should grow rapidly at a rate of 50% per year during Years 4 and 5. After Year 5, the company should grow at a constant rate of 8% per year. If the required return on the stock is 15%, what is the value of the stock today