A) Pollen Inc. is now in the final year of a project. The equipment used in the project has book value of $25,000. Pollen can sell the used equipment today for $40,000, and its tax rate is 35%. What is the equipments after-tax salvage value?

$26,000

$34,750

$14,000

$31,250

B) Casio Manufacturing is considering a project that requires an investment in new equipment of $3,600,000, with an additional $180,000 in shipping and installation costs. Casio estimates that its accounts receivable and inventories need to increase by $720,000 to support the new project, some of which is financed by a $288,000 increase in spontaneous liabilities (accounts payable and accruals). How much is Casios initial net investment outlay?

		$3,780,000
		$4,500,000
		$4,788,000
		$4,212,000