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
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)
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