Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $20,000, and that it has a 30 percent tax bracket. What are the after-tax cash flows for the company?

$63,800

$69,000

$73,600

$72,800

A project requires an investment of $1,500 and has a net present value of $400. If the IRR is 9%, what is the profitability index for the project? (Round your answer to 2 decimal places.)

2.50

0.47

0.09

1.27

The Wet Corp. has an investment project that will reduce expenses by $30,000 per year for 3 years. The project's cost is $20,000. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's tax rate is 27%, what is the cash flow from the project in year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

$25,160

$24,480

$23,150

$23,700

An asset fitting into the 7-year MACRS category was purchased 2 years ago for $90,000. The book value of this asset is now (Do not round intermediate calculations.)

$49,898

$69,298

$59,698

$55,098

Firm X is considering the replacement of an old machine with one that has a purchase price of $60,000. The current market value of the old machine is $27,000 but the book value is $34,000. The firm's tax rate for ordinary income is 36%. What is the net cash outflow for the new machine after considering the sale of the old machine?

$30,480

$42,830

$27,080

$36,350