Calculate the required rate of return for mudd enterprises assuming that investors expect a 4.8% rate of inflation in the future. the real risk-free rate is 3.0%, and the market risk premium is 6.0%. mudd has a beta of 1.7, and its realized rate of return has averaged 12.5% over the past 5 years. round your answer to two decimal places.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine