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22 and 23 only please The Wood Shed is considering adding a new product line that is expected to increase annual sales by $238,000 and

image text in transcribed 22 and 23 only please
The Wood Shed is considering adding a new product line that is expected to increase annual sales by $238,000 and cash expenses by $184,000. The initial investment will require $106,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34 percent. What is the annual value of the depreciation tax shield? $7, 950 $8, 480 $9, 010 $9, 275 $17, 225 Bernie's Beverages purchased some fixed assets is considering a new three year expansion project that requires an initial fixed asset investment of $87,000. This asset will be depreciated to zero over its three year tax life. The project also requires an initial investment in net working capital of $12,000. The fixed asset will have a market value of $10,000 at the end of the project. The tax rate is 34%. If the annual OCF for the project is $18, 750, what is the project's year 3 cash flow? $30, 750 $33, 750 $33, 950 $37, 250 $37, 350 You own some equipment that you purchased 4 years ago at a cost of $216,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $75, 500. Which one of the following statements is correct if your tax rate is 30 percent? The tax due on the sale is $26, 425. The book value today is $178, 675.20. The accumulated depreciation of date is $37, 324.80. The capital gain is $38, 175.20. The after-tax salvage value is $62, 138.68. Which one of the following costs was incurred in the past and cannot be recouped? incremental side sunk opportunity erosion

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