(a). When calculating cash flow from operations, one should: A. subtract depreciation since it represents the cost of replacing worn-out equipment. B. deduct the depreciation tax shield from after-tax profit. C. use after-tax profit and ignore depreciation. D. add depreciation to after-tax profit. (b). What is the operating cash flow for a firm with $500,000 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate? A. $260,000 B. $325,000 C. $360,000 D. $425,000 C. When a depreciable asset is ultimately sold, the sales price is: A. fully taxable. B. nontaxable C. nontaxable only if accelerated depreciation was used. D. taxable to the extent that the sales price exceeds book value. (d) What is the NPV of a 6-year project Assume and the discount rate is 14%. that costs $100,000, has annual revenues of $50,000 and costs of $15,000 the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 35%, A. -$15,560.04 B. $11,151.08 C.$3,411.14 D. $14.782.09