The demand function for spaghetti is given by Q_D=21.6×(I)^0.685×〖(P_spaghetti)〗^ (-0.796)×(P_tacos )^0.216×(P_wine )^(-0.128) where P_spaghetti is the price of spaghetti, p_tacos is the price of tacos, p_wine is the price of wine, and I is the income. The supply function for spaghetti is given by Q_S=7547.1×(P_spaghetti-T)^0.494×(P _sauce )^(-0.638)×(P_Labor )^(-0.687) where P_spaghetti is the price of spaghetti, P_sauce is the price of sauce, P_Labor is the wage rate (the price of labor), and T is the tax per unit of spaghetti. Baseline values of variables: DEMAND DATA SUPPLY DATA Income $20,000 Price of sauce $3.00 Price of tacos $6.00 Price of labor $5.00 Price of wine $20.00 Per unit tax $0.00

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?