QUESTION 4 Manchester Company purchased some fixed assets four years ago at a cost of $382,000. It no longer needs these assets, so it is going to sell them today at a price of $77,000. 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? $77,249.30 $61,320.60 $69,410.80 $73,248.20 $66,009.60 QUESTION 5 A project will produce an operating cash flow of $143,000 a year for three years. The initial cash outlay for equipment will be $319,000. The net aftertax salvage value of $26,500 will be received at the end of the project. The project requires $64,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 10 percent? $35,578.10 $40,613.82 $45,087.36 $50,931.81 $55,376.88 QUESTION 6 10 Delta Equipment is considering a 3-year project with an initial cost of $276,000. The project will not directly produce any sales but will reduce operating costs by $82,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are .1429, .2449, 1749, 1249,0893,0892, .0893, and .0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $135,000 before tax. The tax rate is 25 percent and the required return is 10 percent. An extra $57,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3? $280,275.40 $248,519.30 $261,991.80 $274,833.60 $255,793.40