Salem Mills has an unlevered cost of capital of 14 percent, a cost of debt of 9 percent, and a tax rate of 34 percent. What is the target debt-equity ratio if the targeted cost of equity is 16.5 percent? Select one: a. .76 b..63 0.73 d..69 The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $45,000. The annual cash flows have the following projections. Year Cash Flow 1 $15,000 2 20,000 3 25,000 4 10,000 55,000 What is the internal rate of return? Select one: a. About 10% b. About 23% c. About 27% d. About 7%