4) Low Country Corporation purchased a machine for $100,000, including installation costs. Annual straight-line depreciation is $10,000. If Low Country has a tax rate of 40%, what is the cash flow from disposal if the machine is sold at the end of seven years 20,000? 24,000 A) $16,000 B) $20,250 D) $32,000 5) A firm is considering purchasing an asset with a useful life of 5 years, an initial cost of $8 million, installation costs of $700,000 and a alvage or residual value of $2.5 million. What would be the annual straight-line depreciation for this asset? A) $1.1 million B)/F1.24 million C) $1.60 million ?? $1.74million 6) Wstah of the following statements is TRUE ling an asset at a loss results in low taxes being paid by the corporation. rosion costs should be excluded fron the estimates of a projects cash flows. An increase of a project s net working pital Increass that project's incremental cash flows. traight-line depreciation results in l,gge er deprecia ion expenses in the laver years of an asset's useful e