Q10. Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $36.00 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $17.20 million. The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment? (Enter your answer in millions rounded to 1 decimal place.)

Bottoms Up Diaper Service is considering the purchase of a new Industrial washer. It can purchase the washer for $3.300 and sell its old washer for $900. The new washer will last for 6 years and save $7'00 a year in expenses. The opportunity cost of capital is 11%, and the firm's tax rate is 21%. a. lfthe firm uses straight-line depreciation over a 6-year life, what are the cash flows ofthe project in years 0 to 6? The new washer will have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amounts should be indicated by a minus sign.} b. What is project NPV? {Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is NPV if the firm investment is entitled to immediate 100% bonus depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual operating cash ow in year 1} Annual operating cash flow in years 1 to 6 N F'V N PV Canyon Tours showed the following components of working capital last year: Beginning of End of Year Year Accounts receivable $ 25,696 $ 23,896 Inventory 12,886 14,186 Accounts payable 15,396 13,196 I a. What was the change in net working capital during the year? [A negative amount should be indicated by a minus Sign.) Change in networking capital I I b. If sales were $36,800 and costs were $24,800, what was cash flow for the year? Ignore taxes. Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $5.4 million. The equipment will be depreciated straightline over 6 years, but, in fact. it can be sold after 6 years for $584,000. The rm believes that working capital at each date must be maintained at a level oin% of next year's forecast sales. The firm estimates production costs equal to $1.30 pertrap and believes that the traps can be sold for $5 each. Sales forecasts are given in the following table. The project will come to an end in 6 years. when the trap becomes technologically obsolete. The firm's tax bracket is 40%, and the required rate of return on the project is 10%. Year: 3 1 2 3 4 5 5 Thereafter Sales (millions of traps) B til-.6 6.? 9.8 9.8 6.7 9.4 9 Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. Ely how much will this increase project NPV'? (Do not round your intermediate calculations. Enter your answer in millions rounded to 4 decimal places}