Which of the following are considered cash flows of a project? l. Taxes Il. Financing costs IlI. Sunk costs IV. Opportunity costs a) I and Il only b) I and IV only c) Ill and IV only d) Il and IV only e) I, II. and IV only 2. The Wise Co. purchased a new truck two years ago for $56,000. The company uses MACRS depreciation for accounting purposes. The truck is classified as 5-year property, which has depreciation allowances of 20%, 3290, and 19.20% for the first three years, respectively. The company is in the 30% marginal tax bracket. Today the company received an offer of $32,000 for the truck. What will be the net cash flow from the sale if the company decides to sell the truck today? a. $24,615 b. $26,108 c. $28,663 d. $30,464 e. $31,710 is evaluating a project that is expected to produce cash flows of $5,000 each year for the next 4 years and $8,000 each year for the following 2 years. The IRR of this 6-year project is 9.75 percent the firm's cost of capital is 8 percent, what is the project's NPV? a. $1,375 b. $1,401 c. $1,440 d. $1,487 e. $1,509 et is 70