A machine was purchased for $500,000 and had an installation cost of $20,000 and shipping charges of $5,000. It belongs to the MACRS 5 year class for depreciation purposes.

What is the after-tax salvage value of the machine at the end of year 4?

(Round to the nearest dollar and do not enter a dollar sign)

Assume salvage of $100,000 and tax rate of 21%.

A new machine with a cost basis of $50,000 and falls in a MACRS 3 year class. It will save $0.50 per unit in cost, and the expectation is 50,000 units per year of production. How much will NOPAT increase by in the first year if the tax rate is 35%?