3. Kelley Textile Corporation makes handmade carpets for distribution to upscale retail outlets. The firm is currently considering making towels as well. Which one of the 1 following is the best example of an incremental operating cash flow related to the towel project? following is the best example of an incremental operating cash flow related to the towel project? A. storing supplies in the same space currently used for materials storage B. utilizing the carpet manager to oversee towel production C. hiring additional employees to handle the increased workload should the firm accept the towel project D. researching the market to determine if towel sales might be profitable before deciding to proceed E. planning on lower interest expense by assuming the proceeds of the towel sales will be used to reduce the firm's currently outstanding debt 4. 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 35 percent? MACRS 5-year property Year Rate 1 20.00% 2. 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% A. The tax due on the sale is $26,425. B. The book value today is $178,675.20. C. The accumulated depreciation to date is $37,324.80. D. The taxable amount on the sale is $37,324.80. E. The after-tax salvage value is $62,138.68