Will rate if correct please show work for #15

15. Wilson Corporation is considering purchasing a new piece of machinery, which will be useful for 10 years and generate after-tax cash savings of $22,000. As part of their evaluation, they determine that the machine will be sellable in 5 years for $85,000, which given the estimated book value at that time would subject the company to a taxable gain of $15,000. Alternatively, they can use the equipment for the full 10 years and realize no liquidation proceeds. Which of the following best describes how Wilson should evaluate these two alternatives? Wilson should consider whether the present value of the 10-year annuity exceeds the cash of the 18,000 cash savings from years 6 through 10. The gain on the sale should be ignored to the gain, exceeds the present value of the 18,000 cash savings from years 6 through 10. a. proceeds on the sale. Wilson should consider whether the 85,000 proceeds from the sale exceeds the present value b. since it is a non-cash, book gain. Wilson should consider whether the 85,000 proceeds from the sale, net of any income tax due c. ilson should sell the equipment after 5 years because maintenance costs will almost certainly increase after year 5 16. (BONUS) When determining whether to discontinue a product, such as Google Glass, which of the following items should be irrelevant to the decision? a. Total research and development investment b. Potential alternative uses or sales outlets for the product - c. Fixed costs that would be eliminated were the product discontinued- Anticipated product sales over the next 18 months - ID yys