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Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fullydepreciated vans, which you think

image text in transcribedimage text in transcribed Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fullydepreciated vans, which you think you can sell for $5,000 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $49,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life, but you are unable to make use of either bonus depreciation or Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $5,700 each. If your cost of capital is 10 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) KADS, Incorporated has spent $420,000 on research to develop a new computer game. The firm is planning to spend $220,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated using bonus depreciated; they total $52,000. The machine has an expected life of three years, a $77,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be $620,000 per year, with costs of $270,000 per year. The firm has a tax rate of 21 percent, has an opportunity cost of capital of 13 percent, and expects net working capital to increase by $110,000 at the beginning of the project. What will the cash flows for this project be? Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places

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