1) The Triton Company just purchased a $132,650 piece of equipment that belongs in a 20% CCA class. The company has a marginal tax rate of 34% and a discount rate of 16%. What are the after-tax proceeds from the sale of this equipment if the company sells it after four years at a selling price of $61,125? (Assume that Triton has additional pieces of similar equipment.) A. $39,650 B. $55,968 C. $59,589 D. $61,125 E. $66,032

2) A furniture manufacturer is planning on buying a new industrial sander costing $118,000

and belonging in a 30% CCA class. The sander has projected maintenance costs of $16,000

annually over the three-year life of the sander. At the end of the three years, the sander will be

worthless and will be scrapped. The company has a 34% tax rate, a 16% discount rate. What

is the equivalent annual cost?

A. $36,520

B. $47,892

C. $52,254

D. $55,333

E. $68,540