9%. The project has 5 years and there is no salvage value. For the next three questions consider: Wisdom Tree Funds wants to do some scenario analysis for the purchase of a new grinding tool. Depreciation expense is $18,000 in all three scenarios, and is based on working capital needed. The required return an initial outlay of $90,000 with 5 years of straight line depreciation for the project. There is no added Sales revenue, costs, and taxes under the scenarios are given below. Best Base Worst Sales 90,000 65,000 38,000 Costs 30,000 25,000 18,000 Deprec 18,000 18,000 18,000 EBIT 42,000 22,000 2,000 Tax Expense 14,280 7,480 300 NI 27,720 14,520 1700 OCF = 27. The OCF for the BEST CASE for Wisdom Tree Funds is: a. 36,000 b. 45,720 c. 32,520 d. 19,700 28. The NPV for the BEST CASE for Wisdom Tree Funds is: NOTE: There are five cash flows that are identical (PMT key as a negative number) and an initial outlay. a. 91,219.10 b. 85,276.38 3000 87,834.85 d. 89,511.88 c. 29. a. The NPV in the Worst Case is negative and the Base and Best Case is positive for Wisdom Tree Funds. From this scenario analysis: we clearly should go ahead with the project. b. we have a range of values for NPV to use to decide if we want to go ahead with the project or not. we clearly should not go ahead with the project. d. we should flip a coin to make our decision. C. 30. 1 Amazon just purchased a new delivery truck for $59,000 and will be depreciating it for tax purposes using MACRS (Modified Accelerated Cost Recovery System). If it falls in the 5 year class, what is the amount of depreciation for year 3? Year Rate 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% a. b. $11,382 $12,206 $14,345 $13,398 C. d