How do I solve for sales and get the 481662.06 number

cuny > samplequestions final,answers(1) (2) Compatibility Mode)- Word References Mailings Review View Zotero Add-ins ACROBAT OTelme Sign in Share B BCTC-Ban Editing Styles Paragraph Use the following information to answer questions #1 through #5 The managers of Poncho Parts, Inc. plan to manu facture engine blocks for classic cars from the 1960s era They expect to sell 250 blocks annually for thenext 5 years. Thenecessary foundry and machining equipment will cost a total of$800,000 and will be depreciated on a straight-line basis to zero over the project's life. The firm expects to be able to dispose of the marnufacturing equipment for $150,000 at the end of the project. Labor and materials costs total $500 per engine block, fixed costs are $125,000 per 2% discount rate. year. Assume a 35% tax rate and a 1. What is the annual depreciation tax shield for this project? a $ 20,000 c. $100,000 d. $104,000 e. $120,000 Depreciation tax shield 160,000 35 56000 2 Whatis the expected gftetax cash flowto the firm when the equipmentis sold in year 5? a $65.000 b. $97.500 c. $100,000 d. $115,000 e. $120,125 After tax salvage .. 1 50000-(150000-0)*35 . 97500 3. What is the minimum bidprice the firm should set as a sale price for the blocks if the firm were in a bidding situation? a $1.692 b. $1,927 c. $2,382 d. $2,564 e $2,821 CFO- -800000, CFI-OCF, CF2-OCF, CF3 OCF, CF4-OCF, CFS OCF+97500 (Simplify the above timeline of cash lows so that the required OCF is an annuity with its Present Value--744676 (-800000+55324) where 55324- 97500/(I2S Compute OCFCPMT) with P-74 4676, NmS. 1= 12, FV=0 to obtan : OCFe2 065 80.34 206580.34-(Sales CastsI-T)+ Depreiation CT) Sale:-48 1662 06 Bid Price 481662.06/250-1926.65 1927