Winners Casino Corporation is considering an expansion of their busiest casino. Winners Casino has already conducted and paid $50,000 for a marketing survey. The expansion will cost $2.5 million for the assets including delivery costs and all construction costs. In addition, $500,000 in net working capital will be needed immediately. Compute the net investment of this expansion project.

Remember to use a $, commas where appropriate, and carry your answer to 2 decimal places.

Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being depreciated straight line to 0 over 8 years. If Margaret's Bakery sells the display cases at the following prices what are the after-tax cash flows to Margaret's Bakery? Use 40% for the effective tax rate. A $25,000.00 B $30,000.00 C $35,000.00 D $10,000.00

Remember to use a $, commas where appropriate, and carry your answer to 2 decimal places.

John is considering opening a new pub in the Southwest part of town. The building will cost 1.5 million dollars, and fixtures such as bars kitchen equipment and so on will cost another $200,000, including installation costs. Stocking the pub with inventory before it opens will cost another $100,000. Land for the building site cost John $300,000 several years ago, but now the land could be sold to net John $1,000,000 after tax. Compute the net investment for Johns new pub.

Remember to use a $, commas where appropriate, and carry your answer to 2 decimal places.

Smiley's Ice Cream Parlor is considering replacing their ice cream machines. They were purchased four years ago for a total cost of $100,000 and are being depreciated straight-line to zero over 10 years. If the ice cream machines are sold at the following prices what are the after-tax rate cash flows to Smiley's Ice Cream Parlor? Use the 40% effective tax rate. A $75,000.00 B $60,000.00 C $20,000.00

Remember to use a $, commas where appropriate, and carry your answer to 2 decimal places.