1) An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $13,500,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset?

2) An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $12,780,000 and will be sold for $2,840,000 at the end of the project. If the tax rate is 24 percent, what is the aftertax salvage value of the asset?

3) A project with a life of 7 has an initial fixed asset investment of $43,680, an initial NWC investment of $4,160, and an annual OCF of $66,560. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC?