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Mesa Media is evaluating a project to help increase sales. The project costs $$630,000$ and has an IRR equal to $12$ percent. The project is divisible, which means any portion can be purchased. Mesa can raise up to $$90,000$ in new debt at a before$-$tax cost $($rd$)$ equal to $5$ percent; additional debt will cost $8$ percent before taxes. Mesa expects to retain $$432,000$ of its earnings this year to support the purchase of the project. Mesa's cost of retained earnings is $12$ percent, and its cost of new common equity is $14$ percent. Its target capital structure consists of $20$ percent debt and $80$ percent common equity. If Mesa's marginal tax rate is $40$ percent, how much of the project should be purchased? Round your answer to the nearest dollar.

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Mesa Media is evaluating a project to help increase sales. The project costs $$630,000$ and has an IRR equal to $12$ percent. The project is divisible, which means

any portion can be purchased. Mesa can raise up to $$90,000$ in new debt at a before$-$tax cost $(r_d)$ equal to $5$ percent; additional debt will cost $8$ percent before

taxes. Mesa expects to retain $$432,000$ of its earnings this year to support the purchase of the project. Mesa's cost of retained earnings is $12$ percent, and its

cost of new common equity is $14$ percent. Its target capital structure consists of $20$ percent debt and $80$ percent common equity. If Mesa's marginal tax rate is

$40$ percent, how much of the project should be purchased? Round your answer to the nearest dollar.

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