MLK Co is a manufacturing company which is considering the purchase of a new equipment. The below given summarizes all the information related to the equipment:

-Equipments price: $180,000 -Shipping: $20,000

-Payment to find a good place to install the equipment: $30,000

-Useful Life : 4 years

-Depreciation Method: MACRS 3 year class

-Total Revenues/ year: $100,000 -Operating costs (Excluding Depreciation)/year: $25,000

-Salvage Value: $10,000 -Increase in Current Asset: $23,000 -Increase in Current liabilities (Except N/P): $8,000 -WACC: 9%

-Tax rate: 40% Note: The MACRS rates are 33%, 45%, 15%, and 7% respectively.

9. The after-tax Cash Flow for the 2nd year is: *

A. $85,000

B. $111,000

C. $81,000

D. $86,400

E. None of the above

10. The after-tax Cash Flow for the 3rd year is: *

A. $57,000

B. $58,800

C. $61,000

D. $87,000

E. None of the above

11. The after-tax Cash Flow for the 4th year is: *

A. $57,000

B. $40,000

C. $50,600

D. $51,440

E. None of the above

12. The Book Value of the equipment at termination is: *

A. $0

B. $10,000

C. $15,000

D. $25,000

E. None of the above

13. The Terminal Value (TV) is: *

A. $25,000

B. $21,000

C. $10,000

D. $70,000

E. None of the above

14. The NPV value of the project is: *

A. $10,460

B. $13,418

C. $41,437

D. $49,258

E. None of the above