Question: please answer both! Question 5 (2 points) The Lumber Yard is considering adding a new product line that is expected to increase annual sales by

please answer both!
please answer both! Question 5 (2 points) The Lumber Yard is considering
adding a new product line that is expected to increase annual sales

Question 5 (2 points) The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $226,000 and cash expenses by $137,000. The initial investment will require $114,000 in fixed assets that will be depreciated using the 5- year MACRS. The company has a marginal tax rate of 36 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132) Year MACRS 5-year property Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% Question 6 (2 points) Crafter's Supply purchased fixed assets 3 years ago at a cost of $46,000. It no longer needs these assets, so it is going to sell them today for $25,000. The assets are classified as 5-year property for MACRS. What is the after-tax cash flow from this sale if the firm's tax rate is 32 percent? Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132) MACRS 5- year property Year Rate 1 20.00% 32.00% 3 19.20% 11.52% 11.52% 5.76% a una

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