1-Suppose you sell a fixed asset for $127,000 when it's book value is $159,000. If your company's marginal tax rate is 33%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

2- ompute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 6 percent.

time 0 1 2 3 4 5

cash flow -84 -84 0 119 94 69