Healthy Potions, Inc.,

1. is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $58,719, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 12 years later. Assume the appropriate discount rate is 11.6 percent. What are the present values of the relevant investment cash flows? (Round answer to 2 decimal places, e.g. 15.25.)

Present value=

2. just purchased computing equipment for $28,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $10,800, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent. (Round answer to 2 decimal places, e.g. 15.25.)

After-tax proceeds=