Carmine's Pizza has been considering a new project. The first year's cash flow (CF1) for this project is expected to be $491,400. However, it has just come to light that this project is likely to cannibalize other projects of the company resulting in lost before-tax cash flows of $54,000. If the company's tax rate is 15%, what is your revised estimate of the project's first year cash flow?

		$445,500
		$483,300
		$491,400
		$540,540
		$545,400

Keblar Air Freight is now in the final year of a project. The project equipment originally cost $1,225,000 and this equipment has now been 82% depreciated. The used equipment can be sold for an estimated $250,000 today. If the tax rate is 26%, what is the equipment's after-tax salvage value (the salvage value minus the tax consequences of the gain or loss)?

		$139,670
		$185,000
		$205,000
		$220,500
		$242,330