Use the following information to answer quest requires an initial Master Minds Inc. is considering a new three-year expansion project that using MACRS fixed asset investment of $1.2 million. The fixed asset will be depreciated and it falls into the 3-year class. The project is estimated to generate $1,600,000 in for annual sales, with costs of $400,000. The tax rate is 35% and the required rate of return Master Minds is 15%. (MACRS table should be handed in the exam) 18. What is the depreciation tax shield for year 1? a. $139,986 b. $300,000 ic. $399,960 d. $420,000 19 What is the OCF for year 1? a. $876,654 b. $1,179,960 c, $1,200,000 d. $919,986 20. is the book value of the fixed assets at the end of the project (year3)? What a. $300,000 b. $266,760 c. $88,920 d, $0 21. If they sell the fixed assets for $200,000 at the end of year three what will be the after-tax cash in-flow to Master Mind Inc from the sale a. $200,000 b. $161,122 c, $72,202 d. $130,000