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. ALt Question 23 (6 points) 23. A proposed investment has an equipment cost of $600. It will have a life of 2 years. The
. ALt Question 23 (6 points) 23. A proposed investment has an equipment cost of $600. It will have a life of 2 years. The cost will be depreciated straight-line to a zero-salvage value. Sales will be $2,150 per year and variable costs will run $208 per year, and fixed cost $106 per year. The firm will also need to invest $480 in net working capital. The corporate marginal tax rate is 32% while the average tax rate is 37%. What are the cash flows from assets (CFFA) for this project? A) Year O: $1,080; Year 1: $1,836; Year 2: $2,316 B) Year O:-$1,080; Year 1: $1,344.48; Year 2: $1,344.48 C) Year 0:-$1,080; Year 1: $1,044.48; Year 2: $1,524.48 OD) Year 0:-$1,080; Year 1: $1,344.48; Year 2: $1,824.48 E) Year O:-$2,424.48; Year 1: $1,344.48; Year 2: $1,824.48
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