The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy machine. The machine will cost $27,000 and last 8 years. The machine is expected to have no salvage value at the end of its useful life. The owner projects that the new candy machine will generate $4,100 in after-tax savings each year during its life (including the depreciation tax shield).Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required:Compute the profitability index on the proposed candy machine, assuming an after-tax hurdle rate of: (a) 6 percent, (b) 8 percent, and (c) 10 percent. (Round your final answers to 2 decimal places.)a 6 percent Profitability index __?b 8 percent Profitability index __?c 10 percent Profitability index __?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply o an increase in demand o a decrease in demand