Famed gamer Tyler 'Ninja' Blevins is considering whether to replace his aging game console or to spend money on updating it. The replacement console would cost $7,800 now and would need software updates of $700 to be paid at the end of every year for 6 years. At the end of 6 years, the replacement console can be salvaged for $2,500. The existing game console needs increasing amounts of software updates each year, and its salvage value is falling, as shown below. Year Maintenance Salvage Now $0 1 $1,800 $1,400 (The existing console can be sold for $2,100 now. If it is sold in 1 year, the price will be $1,400. If the existing console is used between t = 0 and t = 1, a software update costing $1,800 must be paid at t=1.) Tyler Blevins faces an opportunity cost of capital of 13%. $2,100 more than operating Expressed in Year 1 dollars, operating the old game console from t=0 to t=1 would cost Tyler Blevins the new game console from t = 0 to t = 1. O $127 O $574 O $312 O $751 O $422 Rosewill Inc., is contemplating an electric Food Drying project which is expected to last for 8 years. Using the profitability index rule, what is the lowest annuity cash flow necessary to approve the Food Drying project if it involves an outlay of $94,900 today? Note: Rosewill's required return is 8.4%. Multiple Choice $16,765.53 $11,862.50 O $18,289.67 O $19,813.81 O $15,475.87 Year 1 Depreciation Percentage 20.00% 32.00 19.20 2 3 4 11.52 5 11.52 6 5.76 After their pizza oven was stolen, the owners of The Rose" bought a new oven for $2,800,000. The new pizza oven is expected to last for 4 years and can be sold for $313,000 at the end of its life. What is the after-tax salvage value of the pizza oven if The Rose's tax rate is 35%? Multiple Choice $313,000 $253,206 $372,794 $203,450