Clone W Mouton de 100 Question 16 ponts Afirmis considering an investment capital equipment. The equipment requires Intia cash flow of $1.000.000, out of which $700,000 is financed with debt of a cost of debt (a) amorted as a regular antity over 3 years, and $300 000 is inced with guy at a cost of equity of 12% e) The tax rate 30%. Given the 3-year e of the equipment, the depreciation schedule is as follows: Year 1,5333000 Year 2.5445 000, Year 3,3140.000 Year 4 $74,000 some basic cath income and cash expense data for this equipment is shown below Operating Cash Income (1300.000 per yeal years 1103 Operating anh Expense (OE) $300.000 per yet years 10 This week's Aron Levy method Not Can Flow for Year 14.00 2006 D300 600 AW Type here to search O EL 0 AD TES 12/10/2009 BAGS home . 5 2 1 5 & 7 6 8 9 ta OW Dispose Question 20 point FormAs value 5100 million and Farm B's value is 500 miliona Apurchases fun and merges wth Firm, then the synergy created by the merger result in a perpetual increase in cash flow of 2 milion per year The capital in the cost of equity is a percent The value of the synergy is Gm WE O e GANGSOD > $ & 3 5 6 8 N o 9 8 O w 3 R E Y U G H J K L

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