$(3$ points$)$ Staple Corp has an asset with an original cost of $$140,000$ and accumulated

depreciation of $$85,000.$ Staple Corp is considering selling the asset for $$30,000$ cash. The

company$$s tax rate is $40\%.$ Calculate the after$-$tax cash inflow from the sale of this asset.

a$.$ $$10,000$

b$.$ $$30,000$

c$.$ $$20,000$

d$.$ $$18,000$

e$.$ $$15,000$

f$.$ $$40,000$

g$.$ $$65,000$

h$.$ None of the above

$2.(2$ point$)$ Variable costs total $$175,000$ when sales total $$250,000$ and fixed costs total

$$63,240.$ The breakeven point in sales dollars is:

a$.$ $$250,000$

b$.$ $$75,000$

c$.$ $$210,800$

d$.$ $$90,343$

e$.$ $$63,240$

f$.$ $$11,760$

g$.$ $$52,500$

h$.$ None of the above

$3.(2$ point$)$ Tremor Corporation wants to purchase a new machine for its plant. The new

machine is expected to generate annual after$-$tax cash savings of $$250,000$ for five years.

The machine will have no residual value at the end of its useful life. The company has a

required rate of return of $9\%.$ What is the maximum dollar amount Tremor Corporation

would be willing to spend for the new machine? $($Hint: the maximum amount Tremor Corp.

is willing to pay would make NPV$=0).$ Round your answer to the nearest dollar.

a$.$ $$250,000$

b$.$ $$272,500$

c$.$ $$632,068$

d$.$ $$777,930$

e$.$ $$554,990$

f$.$ $$700,137$

g$.$ $$972,413$

h$.$ None of the above