QUESTION 12 Advance Engineering purchased some fixed assets four years ago at a cost of $643,000. It no longer needs these assets, so it is going to sell them today at a price of $172,000. The assets are classified as 5-year property for MACRS. The MACRS table values 2000, 3200, 1920, 1152, 1152, and 0576 for Years 1 to 6, respectively. What is the current book value of these assets? $138,560 $125,340 $111,110 $102,780 $94200 QUESTION 13 J&J is considering an investment project that will produce an operating cash flow of $302.000 a year for three years. The initial cash outlay for equipment will be $615,000. The equipment can be sold for $149,333 at the end of the project. The project requires $70,000 of not working capital that will be fully recovered. The tax rate is 25%. What is the not present value of the project if the required rate of return is 14 percent? $138,978 $131,677 $122.455 $116,521 $107.459