.g The introduction of personal taxes may reveal a disadvantage to the use of debt if the: A. dividend income tax rate is less than the interest income tax rate. B. dividend income tax rate is greater than the interest income tax rate. C. dividend income tax rate is equal to the interest income tax rate. D. interest income tax rate is zero. E. none of the above. g

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%