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e Edit View History Bookmarks Profiles Tab ntasy Footb x | www.espn.com X Window Help Tue Apr 30 9:17 Final Exam (IS 310-02) (S

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e Edit View History Bookmarks Profiles Tab ntasy Footb x | www.espn.com X Window Help Tue Apr 30 9:17 Final Exam (IS 310-02) (S X | Discord | #gen X Bash Project S X Dashboard G finance ai - Go x + uah.instructure.com/courses/73207/assignments/832678 Relaunch to update 23 4 points 52:48 Time Remaining Return Submit V Year 3-year MACRS A firm purchases a machine for $250,000. The asset will be depreciated using a 3-year MACRS schedule. What is the book value of the asset after the third year? 1 33.33% 2 44.45% 3 14.81% 4 7.41% $18,525 $166,675 $55,550 None are correct. 24 4 points Da A project will require the purchase of equipment worth $36 million. Employee training will cost another $6 million at t=0. The project will be operated for 4 years, generating estimated annual sales revenues of $16 million and annual expenses of $5 million. You expect to sell the equipment for $8 million at the end of the project. The tax rate is 40% and the cost of capital is 10%. The life of the equipment is 6 years and we will straight-line depreciate it to O. What is the NPV for this project? -$4.51 million e2 W S W $4.82 million $1.29 million $7.83 million 113 141 APR 30 Atv tv MacBook Pro C 205 $ 4 #3 G Search or type URL % & 6 27 8 9 E R T Y U I D F G H J K L X C V B N M He O P PC + de

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