1. Your firm needs a computerized machine tool lathe which costs $52,000 and requires $12,200 in maintenance for each year of its 3 year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent. If the lathe can be sold for $5,200 at the end of year 3, what is the after-tax salvage value?

2. You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Farstroke to be $480 per unit and sales volume to be 1,000 units in year 900 units in year 2and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $265 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $189,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $43,000NWC requirements at the beginning of each year will be approximately 30 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 12 percent What change in NWC occurs at the end of year 1?

3. Your company has spent $210,000 on research to develop a new computer gameThe firm is planning to spend 41,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciatedthey total 5,100The machine has an expected use at your company of years26,000 estimated resale value, and under the MACRS class Revenue from the new game is expected to be $310,000 per year, with of 110.000 per year. The firm has a tax rate of 21 percentan opportunity cost of capital of 15 percent, and it expects net working capital to increase by the beginning of the projectWhat be the net cash flow for year one of this project?