Supposean investment requires the company to increase inventories by $30,000 at the beginning of the project. However, the financial manager expects that accounts payable will increase by $10,000 initially. The company's marginal tax rate is 40 percent. what s the  effect of this change in inventory and accounts payable on the initial cash outlay? 

 

2.Suppose a company has equipment that had an original cost of $15,000, and it sells this equipment 5 years later for $5,000. If the carrying value of this equipment for tax purposes is $2,000 and the company's marginal tax rate is 25 percent, what s tax on the depreciation recapture associated with the sale of this equipment?