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Previous Page Next Pase Use the following information to answer the next 5 questions: Page 5 of 6 The Board of Directors of National Brewing

Previous Page Next Pase Use the following information to answer the next 5 questions: Page 5 of 6 The Board of Directors of National Brewing Inc. is considering the acquisition of a new still. The still is priced atbut would requirein transportation costs andfor installation. Purchase of the still would increase inventories by, accounts receivable by, and accounts payable by. The still has a useful life of 4 years but will be depreciated using 5-year MACRS. The applicable MACRS depreciation rates are, and. It is expected to have a salvage value ofat the end of 4 years. The still would increase revenues byin yearin year 2, andin years 3 and 4. Annual operating costs are projected to beof revenues. The firm's marginal tax rate is, and the project's cost of capital is. Question 17(1 point) What is the initial outlay?What is the Year 1 operating cash flow (OCF)? $88,100 $82,450 $97,600 $92,400 What is the year 2 operating cash flow (OCF)? $143,200 $139,200 $140,800 $143,600
What is the after-tax salvage value (ATSV) $85,000 $78,000 $82,000 $80,000
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