11. Ben Lake Enterprises is currently considering a project that will produce cash inflows of $3,500 a year for 3 years followed by $1,200 a year for 2 more years. The cost of the project is $10,000. What is the profitability index if the discount rate is 7 percent? 1.10 b. 1.06 1.00 d. .98 .96 a. c. e. 12. A corporation bought a machine 5 years ago for $144,000 and sold it today for $55,000. The machine was being depreciated to a zero salvage value using straight-line method over 8 years. If the firm's tax rate is 34%, what is the tax effect of the sale? $ 340 tax due b. $ 340 tax saved c. $7,140 tax due d. $7,140 tax saved a