please help with the corporate finance practice set. thanks.

Module 10 Practice Set One point for each correct answer. Total of 10 points for this practice set. 1. Brock Florist Company buys a new delivery truck for $29,000, a light truck. Using MACRS tables for a fiveyear asset, calculate the book value at the end of the year 4. ? 2. Brock Florist Company sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the aftertax salvage value for the truck at each of the following sale prices? Sales Price ($) $15,000 $10,000 $5,000 AfterTax Cash Flow ($) ? ? ? 3. Revolution Records will build a new recording studio on a vacant lot next to the operations center. The land was purchased five years ago for $450,000. Today, the value of the land has appreciated to $780,000. Revolutionary Records did not consider the value of the land in its NPV calculations for the studio project and came up with an NPV of $600,000. What is the correct NPV value? ? 4. For the following data, calculate the OCF (tax rate = 34%): Sales Costs (excludes depreciation) Depreciation $682,900 437,800 110,400 ? 5. Huffman Systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $38.50 per unit. The cost to produce each unit is expected to be 42% of the sales price. The new product will have an additional $494,000 fixed costs each year, and the manufacturing equipment will have an initial cost of $2,400,000 and will be depreciated over eight years on a straight line basis. The company has a tax rate of 40%. What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant of the next eight years? ? 6. The following values of current assets and current liabilities are given for the company. If the company does the project, what is the change in net working capital? Account Accounts receivable Inventory Accounts payable Without Project $880 $1,410 $550 With Project $910 $1,870 $895 ? 7. Machine A costs $100 to buy and $10 per year to operate. It wears out and must be replaced every two years. Machine B costs $140 to buy and $8 per year to operate. It wears out and must be replaced every three years. Using a 10 percent required return, compute the equivalent annual cost for each machine. (Both answers will be negative.) Machine A Machine B EAC