Use the following to answer questions 109-110: Weichman Inc. has provided the following data concerning an investment project that has been proposed: Initial investment....... Annual cash receipts Life of the project....... Annual cash expenses Salvage value.... ........... $960,000 $624,000 ....dib 8 years $281,000 $48,000 280.112 (A The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 15%. A) $48,000 B) $14,400 C) $33,600 D) $0 109. When computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year? Answer: C Level: Medium LO: 8 Appendix: 14D 110. The net present value of the project is closest to: A) $299,470 B) $288,483 C) $117,329 D) $128,316 Answer: A Level: Medium LO: 8 Appendix: 14D

Use the following to answer questions 109-110: Weichman Inc. has provided the following data concerning an investment project that has been proposed: The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 15%. 109. When computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year? A) $48,000 B) $14,400 C) $33,600 D) $0 Answer: C Level: Medium LO: 8 Appendix: 14D 110. The net present value of the project is closest to: A) $299,470 B) $288,483 C) $117,329 D) $128,316