The Tomas School of Falconry is considering purchasing a machine to create gauntlets for use in falconry (all dollar values are in thousands). The first machine has a 4 year life and an initial cost of $360. The second machine has a 3 year life and an initial cost of $285. Both machines have a $50 salvage value at the end of their useful life, and the company will use straight line depreciation to the salvage value for either machine. Both machines will require an initial infusion of $15 in net working capital. After that net working capital will be 10% of sales. The first machine will generate sales of $185 in year 1, growing $5 a year after that. The second machine will generate sales of $170 in year 1 growing $10 a year after that. Costs for each machine are 10% of sales. The company is in the 40% tax bracket. The Tomas School of Falconry has 12 million shares of stock outstanding with a current market price of $11.30. The stock’s most recent dividend was $2. Dividends are expected to grow at 3% in the future. The company has $30 million in face value of debt outstanding. The debt has a price of 93’21. The bonds have a coupon rate of 7%, and pay coupons semi-annually. The bonds will mature in 25 years. Based on NPV (with EAC), and assuming the projects are mutually exclusive, which machine should the School purchase? Calculate WACC,Weight Equity,Cost of Equity and After-tax cost of Debt.