Question 10 5 pts Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 7-year class. The equipment has an estimated life of 6 years, it costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the sixth year for $10,000. The new brewing equipment is expected to generate new sales of $30,000 per year and the firm's costs will go up by $1,000 per year. In addition, the company will need to increase accounts receivable by $2500 and inventory will also increase by $1500. The company's tax rate is 20 percent. (Numbers in parentheses are negative) 1 MACRS Class Year 3yr 5yr 7yr 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% What would be the operating cash flow in year 1 (t=1)? $29,866 $23,116 O $27,658 $26,058 $20,342 Question 11 5 pts Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 7-year class. The equipment has an estimated life of 6 years, it costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the sixth year for $10,000. The new brewing equipment is expected to generate new sales of $30,000 per year and the firm's costs will go up by $1,000 per year. In addition, the company will need to increase accounts receivable by $2500 and inventory will also increase by $1500. The company's tax rate is 20 percent. (Numbers in parentheses are negative) 5yr 1 MACRS Class Year 3yr 7yr 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% What would be the cash flow from assets (CFFA) at t=6? $36,984 $36,324 $40,984 $38,306 $39,662