Question 2: (8 marks) A. Edward's Manufactured Homes purchased some machinery 2 years ago for $419,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $140,000 to a foreign firm for use in its production facility in South America. What is the after tax salvage value from this sale if the tax rate is 35 percent? MACRS 5-year property Year Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 1 2 3 4 5 6 B. The Miller Computer Corporation is trying to choose between two mutually exclusive projects: (4 marks) Year Cash Flow - Project A Cash Flow - Project B 0 (65,000) (20,000) 127,000 9,100 2 27,000 9,100 3 27,000 9,100 The required return is 10%. Using the NPV rule analyze the above given data and recommend the project that the corporation should take and give proper justification