Use the following data to answer Questions 1 through 14: Mercury Inc. is considering an expansion project that has a life of four years. The proposed project has the following features: Initial cost of the equipment is $200,000, with shipping cost of $10,000 and modification cost of $30,000. The company will also pay $25,000 to find a suitable place to install the equipment. The equipment will be depreciated over 4 years using MACRS at the following rates (33%, 45%, 15%, and 7%) Inventories will increase by $25,000, and accounts payable will rise by $5,000. The company will sell 100,000 units per year with a price of $2/unit. The company's total operating cost will equal to $120,000 each year. At t=4, the equipment's salvage value is $25,000. The company's tax rate is 40%. The project's WACC is 10% 6. The depreciation expense for the 3rd year is: * A. $36,000 B. $96,000 C. $65,000 D. $39,750 E. None of the above 7. The depreciation expense for the 4th year is: * O A $14,000 B. $16,800 C. $18,550 D. $16,000 E. None of the above 8. The after-tax Cash Flow for the 1st year is: O A $79,000 B. $79,680 C. $80,000 D. $79,640 E. None of the above 9. The after-tax Cash Flow for the 2nd year is: * A. $91,200 B. $90,000 C. $91,400 D. $90,200 O E None of the above 10. The after-tax Cash Flow for the 3rd year is: * O A $62,300 B. $62,400 C. $61,000 D. $62,000 O E. None of the above 11. The after-tax Cash Flow for the 4th year is: * O A $54,720 B. $54,700 C. $54,740 D. $53,720 E. None of the above Use the following data to answer Questions 1 through 14: Mercury Inc. is considering an expansion project that has a life of four years. The proposed project has the following features: Initial cost of the equipment is $200,000, with shipping cost of $10,000 and modification cost of $30,000. The company will also pay $25,000 to find a suitable place to install the equipment. The equipment will be depreciated over 4 years using MACRS at the following rates (33%, 45%, 15%, and 7%) Inventories will increase by $25,000, and accounts payable will rise by $5,000. The company will sell 100,000 units per year with a price of $2/unit. The company's total operating cost will equal to $120,000 each year. At t=4, the equipment's salvage value is $25,000. The company's tax rate is 40%. The project's WACC is 10% 6. The depreciation expense for the 3rd year is: * A. $36,000 B. $96,000 C. $65,000 D. $39,750 E. None of the above 7. The depreciation expense for the 4th year is: * O A $14,000 B. $16,800 C. $18,550 D. $16,000 E. None of the above 8. The after-tax Cash Flow for the 1st year is: O A $79,000 B. $79,680 C. $80,000 D. $79,640 E. None of the above 9. The after-tax Cash Flow for the 2nd year is: * A. $91,200 B. $90,000 C. $91,400 D. $90,200 O E None of the above 10. The after-tax Cash Flow for the 3rd year is: * O A $62,300 B. $62,400 C. $61,000 D. $62,000 O E. None of the above 11. The after-tax Cash Flow for the 4th year is: * O A $54,720 B. $54,700 C. $54,740 D. $53,720 E. None of the above