The Jones Company has just completed the third year of a 5-dminishing value recoevery period for a piece of equipment it originally puchased for $296000. The depreciation rate is 40%.

a. What is the book value of the equipment?

b. If JInes sells the equipmenr today for $71000 and its tax rate is 30%, what is the after-tax cash flow from selling it?

c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it? Explain. (Assume the new order will consume the remainder of the machine's useful life)