Answer all please

A company is considering the purchase of equipment costing $84000 which will permit it to reduce its existing labour cost by $21000 each year for twelve years. The company estimates that it will have to spend $2000 every two years overhauling the equipment. The equiment may be depreciated using straight line depreciation over 12 years for tax purposes. The company tax rate is 30 cents in the dollar and the after corporate tax cost of capital is 10% per annum.

Assume:

1. Salvage value of zero.
2. The outlay of $84000 occurs at time zero.
3. All other cash flows including, tax payments and credits are made at the end of the year.
4. No overhaul is required in year 12.

What is the NPV to the nearest dollar? Be careful not to round until the last calculation.

=> Use the following information to estimate the taxable income for year 5.

Year	Sales in units
1	10,000
2	20,000
3	40,000
4	45,000
5	41,000
6	25,000

Unit price for sales in years 1 to 3: $50 and for years 4 to 6: $45 Variable Cost (VC) : $25 per unit Fixed Cost (FC) : $50 000 per year Initial Investment: $600 000 Salvage: $50 000 at the end of year 6 tax rate: 34% cost of capital 15% depreciation method: prime cost to zero

		$770,000
		$650,000
		$670,000
		$875,000
		$720,000