Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $25,000 but the book value is $36,000. The firm's combined tax rate is 39%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired. Multiple Choice $40,710 $37,310 $46,580 $53,060 Assume a corporation has earnings before depreciation and taxes of $105,000, depreciation of $45,000, and that it has a 35% combined tax bracket. What are the after-tax cash flows for the company? Multiple Choice $84,000 $78,800 $88,600 $87,800 A project requires an investment of $1,200 and has a net present value of $500. If the internal rate of return is 9%, what is the profitability index for the project? (Round your answer to 2 decimal places.) Multiple Choice 2.65 0.62 0.09 1.42 A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Project A has a cost of $335,000 and the following cash flows: year 1 $140,000; year 2 $150,000; and year 3 $100,000. Project B has a cost of $365,000 and the following cash flows: year 1 $220,000; year 2 $110,000; and year 3 $150,000. Using a 6% cost of capital, what is the net present value of project A? Multiple Choice O $25,930 $14,520 O $11,589 $19,230