Suppose that you will sell a piece of equipment for $75,000 even though it has been depreciated down to a book value of $125,000. If your company faces a tax rate of 34%, what will be the after-tax cash flow associated with this sale?

Suppose that you are choosing between two printers for an office. Printer A costs $600, will last for 3 years, and will require after-tax net expenses for printer cartridges of $400 per year; Printer B only costs $250, will last for 4 years, but will require after-tax net expenses for printer cartridges of $550 per year. If your firm faces a cost of capital of 11 percent, which printer should be chosen, and why?