Toppin's Tops is considering adding a new product line that is expected to increase annual sales by $355,000 and cash expenses by $277,000. The initial investment will require $426,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the six-year life of the project. The company has a marginal tax rate of 21 percent. What is the annual value of the depreciation tax shield. Multiple Choice O O $71,000 $15,770 $14,910 A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,900,000 and can be sold for $755,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 21 percent. What is the aftertax salvage value of the equipment? Multiple Choice O $755,000 O $542,856 $453,000 A project is expected to generate annual revenues of $116,900, with variable costs of $74,500, and fixed costs of $15,000. The annual depreciation is $3,800 and the tax rate is 21 percent. What is the annual operating cash flow? Multiple Choice O O O $58,692 $43,692 $31,200