4.)You are tasked with evaluating the purchase of a vending machine for the snack room.The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $500. The machine would produce revenue of $3,000 per year with costs of $735 per year. The firms tax rate is 20%.The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well.

What is the operating cash flow associated with the first year of operation?

5.) A firm has decided to sell equipment that they purchased five years ago for $10,000. The firm depreciated 50% of the equipments value. The firm is planning on selling the equipment for $7,767. If the tax rate is 25% what is the net sale price (after tax salvage value)?

6.) J's Foods is trying to estimate the cash flows in their first year of operation. They project that the firm will have sales of 100,000; operating costs of 50,000; and depreciation of 10,000. If their tax rate is 28% what would the firm's operating cash flow equal?