8. Sophie's Choices is considering adding a new widget carver to its location. The widget carver would cost $81,000, and would be depreciated on a straight-line basis over its 7 -year life. After 7 years, it will be sold for $9,000 The estimated income from this giant widget carver would be $15,000. Sophie's Choices would incur an additional $5,700 in costs. In addition, Sophie's Choices anticipates an additional $5,000 in annual revenue from its existing facilities if the widget carver is added. The project will require $7,000 of net working capital, which is recoverable at the end of the project. The current tax rate is 24%. What is the year 0 flow from this project? C12 A. $81,000 B. $88,000 C. $81,000 D. $88,000 E. $97,000 9. Paula Parking put up a short term parking garage. It is depreciated by MACRS on a 3-year schedule. The MACRS percentage rates starting with Year 1 are: 33.33,44.45,14.81, and 7.41 . The asset had a cost of $186,000 and is being sold for $29,100 after 3 years. If the tax rate is 21 percent, what is the net salvage cash flow from the sale of this garage? C12 A. $40,972 B. $33,782 C. $13,764 D. $25,883 E. $22,989 12. Levi Town $537,800 total assets, $412,400 net fixed assets, $323,700 long-term debt, and $388,700 total debt. If inventory is $43,200, what is the quick ratio? C 4 A. 1.43 B. 1.93 C. 1.26 D. 1.41 E. 0.86 13. Porkle has 8.2% bonds outstanding that mature in 10 years. Currently, the bonds are selling for $1,096. These bonds can be called in 4 years for $1050. What is the Yield To Call on these bonds? C7 A. 6.86% B. 7.19% C. 6.55% D. 3.43% E. 7.64%