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Need help with 2 questions QUESTION 1 XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new

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Need help with 2 questions

QUESTION 1 XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During year 1, XYZ would have total revenue of $167,000 and total costs of $79,000 if it pursues the Santa Fe project, and the firm would have total revenue of $147,000 and total costs of $71,900 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $77,200 if the firm pursues the project and $38,300 if the firm does not pursue the project. The tax rate is 45.50%. What is the relevant operating cash flow (OCF) for year 1 of the Santa Fe project that XYZ should use in its NPV analysis of the Santa Fe project? O $21,270.00 (plus or minus $1) $34,170.00 (plus or minus $1) $24.730.00 (plus or minus $1) $46,000.00 (plus or minus $1) None of the above is within $1 of the correct answer QUESTION 2 What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86,100.00, the tax rate is 29.00%, the equipment is sold in 3 years for $15,200.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively? O $1,145 (plus or minus $10) $3,057 (plus or minus $ 10) O $12,040 (plus or minus $10) $10,792 (plus or minus $10) O None of the above is within $10 of the correct

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