1. Young Company received $13,000 cash from sale of a machine that had a $18,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash flow analysis would be:
   1. 14,500
   2. 3,500
   3. 6,500
   4. 16,500
   5. 12,600
2. Flagler Electronics currently sells a camera for $240. An aggressive competitor has announced plans for a similar product that will be sold for $215. Flaglers marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camea is $175, and Flagler has a profit goal of 20% of sales. If Flagler meets competitive selling prices, what is the companys target cost?
   1. 172
   2. 48
   3. 192
   4. 41
   5. 164