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plz answer both quick. in a time crunch. will give thumbs up!! this is the entire question. no additional info is needed. Question 27 (4

plz answer both quick. in a time crunch. will give thumbs up!! image text in transcribed
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this is the entire question. no additional info is needed. image text in transcribed
Question 27 (4 points) You are evaluating the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $ 5,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for 3 years and then be sold for $ 19 ,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent What is the total value of the terminal year non-operating cash flows at the end of Year 3? Round it to a whole dollar, and do not include the S sign. Year MACRS Percent 1 0.39 2 0.45 3 0.15 4 0.07 Question 26 (4 points) You are evaluating the proposed acquisition of a new computer. The computer's price is $ 4 0,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2.000. The computer would increase the firm's before-tax revenues by S 24,000 per year but would also increase operating costs by S 16 ,000 per year. The computer is expected to be used for 3 years and then be sold for S25,000 The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the operating cash flow in Year 2? Round it to a whole dollar, and do notlinclude the S sign Year MACRS Percent 0.33 1 2 3 0.45 0.15 0.07 4

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