insideLM Home Home 0 Gradebook Content Content Question 5 - Wk 3 - Apply: Wk 3 Qu X * Course Hero https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252Fl Wk 3 - Apply: Wk 3 Quiz [due Day 7] 5 2 points Mc Graw Hill Saved Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $1,800 and sell its old washer for $600. The new washer will last for 6 years and save $500 a year in expenses. The opportunity cost of capital is 19%, and the firm's tax rate is 21%. a. If the firm uses straight-line depreciation over a 6-year life, what are the cash flows of the project in years 0 to 6? The new washer will have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amounts should be indicated by a minus sign.) b. What is project NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is NPV if the firm investment is entitled to immediate 100% bonus depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual operating cash flow in year 0 a. Annual operating cash flow in years 1 to 6 b. NPV C. NPV < Prev 5 of 15 Next > III\ Help Save & Exit Submit