$5.$ You are evaluating the proposed acquisition of a new machine costing $$65,000,$ and it falls into the MACRS $3-$year class. Purchase of the machine would require an increase of net operating working capital of $$4,000,$ which will be recovered when the machine is sold. The machine would increase the firm's revenues by $$21,000$ per year and its operating costs by $$12,000$ per year. The machine is expected to be used only for $3$ years and then be sold for $$27,000.$ The firm's marginal tax rate is $29$ percent, and the project's cost of capital is $14$ percent. What is the non$-$operating terminal cash flows at year $3?$ MACRS $3-$year schedule is as follows: $33\%,45\%,15\%,$ and $7\%$ for years $1$ to $4,$ respectively.

Question $13$ options:

$$23,800$

$$24,150$

$$24,490$

$$24,730$

$$25,040$

$$25,300$

$6.$ Mars Inc. is considering a $5-$year project that requires a new machine that costs $$53,000,$ and an additional net working capital of $$5,000,$ which will be recovered when the project ends in $5$ years. This project would increase the firm's revenues by $$28,000$ per year and its operating costs by $$15,000$ per year. Mars will use the $3-$year MACRS to depreciate the machine, and it expects to sell the machine at the end of the project for $$16,000.$ The firm's marginal tax rate is $28$ percent, and the project's cost of capital is $14$ percent. What is the net cash flow at year $5,$ the final year? MACRS $3-$year schedule is as follows: $33\%,45\%,15\%,$ and $7\%$ for years $1$ to $4,$ respectively.

Question $14$ options:

$$25,880$

$$26,200$

$$26,700$

$$27,380$

$$28,020$

$$28,380$