Walmart is planning to sell material hat was purchased 13 years ago for $1,600,000. The market value of the material is $300,000. The material has depreciated to a book value of $500,000. What is the tax implication of the sale of this material if Walmart's marginal tax rate is 34%.

• tax liability of $68,000
• tax savings of $102,000
• tax liability of $102,000
• tax savings of $68,000

Betty, a project manager, is estimating the cash flows of a project that requires an investment of $500,000 in a machine, including installation cost, and $20,000 in working capital, which will be fully recaptured at the end of the project. The machine has an estimated life of 8 years and will be depreciated through the simplified straight-line method. This project is expected to raise the company's annual revenues by $330,000 and increase annual costs by $125,000. The machine Betty purchases for the project can be sold for $70,000 in 8 years. The firm has a marginal tax rate of 40%. Find the terminal value of the project

• $48,000
• $70,000
• $42,000
• $28,000
• $62,000