Question: Question 17 1 pts A $50,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold for $50,000

 Question 17 1 pts A $50,000 machine with a 8-year classlife was purchased 2 years ago. The machine will now be sold

Question 17 1 pts A $50,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $94,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $2,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project? Question 19 1 pts Hampton Corporation has a beta of 0.84 and a marginal tax rate of 34%. The expected return on the market is 10% and the risk-free interest rate is 2.48%. Estimate the firm's cost of internal equity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.70%, FOR EXAMPLE, ENTER 7.70

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