13. At the end of the economic life of a machine, the salvage value is $1,500 while the book value is $800. Suppose that the marginal tax rate is 40%, what is the after-tax salvage value? (5 points) 14. Johnson Inc. is considering a new four-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which it will be worthless. The project is estimated to generate $2 million in annual sales, with costs of $800,000. a) If the tax rate is 35 percent, what is the OCF for this project? ( 3 points) b) Suppose the required return on the project is 13 percent. What is the project's NPV? ( 2 points)