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A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,550,000 and can be sold for $720,000 at the

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A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,550,000 and can be sold for $720,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 21 percent. What is the aftertax salvage value of the equipment? Multiple Choice o $720,000 o $757,296 0 $468,000 $697,622 O $539,568 Rock Haven has a proposed project that will generate sales of 1,770 units annually at a selling price of $26 each. The fixed costs are $14,900 and the variable costs per unit are $7.55. The project requires $30,400 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $7,700 and the tax rate is 21 percent What is the operating cash flow? Multiple Choice $22,182 $17,394 $8,882 $8,875 $15,624 Gateway Communications is considering a project with an initial fixed assets cost of $1.63 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $233,000. The project will not change sales but will reduce operating costs by $384,000 per year. The tax rate is 24 percent and the required return is 10.8 percent. The project will require $48,500 in net working capital, which will be recouped when the project ends. What is the project's NPV? Multiple Choice $ $399,054 $415,017 $428,850 $367,946 $351,948

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