OXY plans to purchase some machinery for its new project. The purchase price is $455,000. The expected life of the new project is 5 years. After 5 years, the equipment can be sold for $50,000. The company uses straight-line to zero depreciation. What is the after-tax salvage value of the equipment at year 5 if the tax rate is 21 percent? $39,500$35,000$49,500$50,000$15,000 Question 9 (1 point) Michael Bloomberg Corp. is expanding and expects operating cash flows of $59,000 a year for 4 years as a result. This expansion requires $80,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $10,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 15 percent? $15,913$68,631$32,452$78,400$84,161 D View hint for Question 9 Question 10 (1 point) Joe Biden Corp. is considering a project with an initial fixed asset cost of $1.5 million which will be depreciated straight-line to a zero book value over the 10 -year life of the project. At the end of the project the equipment will be sold for an estimated $300,000. The project will not directly produce any sales but will reduce operating costs by $400,000 a year. The tax rate is 21 percent. The project will require $45,000 of inventory which will be recouped when the project ends. Should this project be implemented if the firm requires a 13 percent rate of return? Why or why not? No; The NPV is $1,004,710.21 No; The NPV is $74.814.56 Yes; The NPV is $143,560.84 Yes, The NPV is $423,693.52 Yes; The NPV is $40,570.06