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MOPAR is looking to buy new equipment that will increase sales by $120,000 per year. Operating expenses equal 60% of sales. The machine costs $225,000

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MOPAR is looking to buy new equipment that will increase sales by $120,000 per year. Operating expenses equal 60% of sales. The machine costs $225,000 and will last 10 years. MOPAR expects to sell the machine for $5,000 at the end of the project's 10-year life. The firm's tax rate is 30%%. Calculate OCF for T=3 only. Follow POST-2018 TAX (NEW) RULES. a. $22,600 b. $25,700 c. $33,600 d. $47,000 If MOPAR (above) had to unexpectedly sell the equipment at T=3 for a market value of $14,000 calculate the ATSV they would receive. Follow POST-2018 TAX (NEW) RULES. a. $1,375 b. $13,431 c. $4,200 d. $14,593 e. $9,800 f. $29,375 g. $57,725 New problem, but still under POST-2018 TAX (NEW) RULES. You are looking at a cost-saving project that requires plant and equipment costing $1,000,000. The new method doesn't affect sales but will save $85,000 per year in before-tax operating costs. If your marginal tax rate is 30%, calculate OCF for T=5 only a. OCF=$129,500 b. OCF=$229,500 c. OCF=$83,000 d. OCF=$85,000 e. OCF=$86,500 f. OCF=$89,500 g. OCF=$59,500

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