Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,600 and sell its old washer for $900. The new washer will last for 6 years and save $1,100 a year in expenses. The opportunity cost of capital is 20%, and the firm's tax rate is 40%.

a.If the firm uses straight-line depreciation to an assumed salvage value of zero over a 6-year life, what is the annual operating cash flow of the project in years 0 to 6? The new washer will in fact have zero salvage value after 6 years, and the old washer is fully depreciated.(Negative amount should be indicated by a minus sign.)

b.What is project NPV?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.What is NPV if the firm uses MACRS depreciation with a 5-year tax life?Use theMACRS depreciation schedule.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $42.5 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $18.5 million. The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment?(Enter your answer in millions rounded to 1 decimal place.)

A house painting business had revenues of $16,800 and expenses of $9,800 last summer. There were no depreciation expenses. However, the business reported the following changes in working capital:

Accounts receivable$ 2,000 $ 5,300

Accounts payable 860 380

Calculate net cash flow for the business for this period.