Subject:FINN2300 I do not want a detailed answer. I just want the final answer as soon as possible. Solve quickly I get you thumbs up directly Thank's Motasem Abu

Sanad Inc. is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. Facts Existing Machine Proposed Machine Cost$100,000 Cost =$150.000 Purchased 2 years ago Installation = $20,000 Depreciation using MACRS over Depreciation-the MACRS a 5-year recover schedule 5-year recovery schedule will be used Current market value = $105,000 Five year usable life remaining Five year usable life expected Earnings before Depreciation and Taxes Existing Machine Proposed Machine Year 1 $160,000 Year 1 $170,000 2 150,000 2 170,000 3 140,000 3 170,000 4 140,000 4 170,000 5 140,000 5 170,000 The firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: Target Market Source of Capital Proportions Long-term debt 30% Preferred Stock 15% Common Stock 55% Debt: The firm can sell a 20-year, $1,000 par value, 7 percent bond for $990. A flotation cost of 2 percent of the face value would be required in addition to the discount of $10. Preferred Stock: The firm has determined it can issue preferred stock at $65 per share par value. The stock will pay an $8.00 annual dividend. The flotation cost stock is $7 per share. Common Stock: The firm's common stock is currently selling for $50 per share. The dividend expected to be paid at the end of the coming year is $5.07. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.45. a new common stock issue must be underpriced at $1 per share and the firm must pay $3 per share in flotation costs. > Calculate the cost of debt Calculate the cost of preferred stock Calculate the cost of common stock + the growth rate of common stock dividends - Compute the payback period for these projects