DO BOTH

Maynard's Tools needs a computerized machine tool lathe which costs $65,713 and requires $10,233 in maintenance expense for each year of its 5-year life. After five years, this machine will be replaced. The machine falls into the MACRS e 5-year class life category. Assume a tax rate of 25 percent and a discount rate of 12 percent. If the lathe can be sold for $12,845 at the end of year 5, what is the after-tax salvage value? Below are the MACRS rates for the 5-year recovery period. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250). Year MACRS Rate 1 20.00% 2. 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Waters & Gilmour Pink Piggy Bar-B-Que, Inc. operate a chain of bar-b-que restaurants. The firm's stock has a beta of 0.6, the current risk-free rate is 4.8 percent, and the expected return on the market is 12.7 percent. What is Waters & Gilmour's cost of equity capital? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 7.8)