Question: PLEASE ANSWER BOTH. PLEASE 1 pts D Question 8 Consider an asset that costs $743,036 and is depreciated straight-line to 36,147 over its 11-year tax

PLEASE ANSWER BOTH. PLEASE
PLEASE ANSWER BOTH. PLEASE 1 pts D Question 8 Consider an asset

1 pts D Question 8 Consider an asset that costs $743,036 and is depreciated straight-line to 36,147 over its 11-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $181,096. If the relevant tax rate is 0.28, what is the aftertax cash flow from the sale of this asset (SVNOT)? 2 pts Question 9 Dog Up! Franks is looking at a new sausage system with an installed cost of $705,081. This cost will be depreciated straight-line to 26,459 over the project's 7-year life, at the end of which the sausage system can be scrapped for $81,748. The sausage system will save the firm $196,559 per year in pretax operating costs, and the system requires an initial investment in net working capital of $76,783. If the tax rate is 0.28 and the discount rate is 0.15, what is the total cash flow in year 7? (Make sure you enter the number with the appropriate +/- sign)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!